1, domestic crude steel production remains highAlthough the recent domestic steel market has been relatively low, and the loss of steel mills win less, but this does not seem to affect the enthusiasm of steel production. According to the China Steel Association statistics show that: in early April, the daily output of crude steel in key enterprises in China was 1 million 697 thousand and 300 tons, and the average daily output of crude steel in China was estimated at 2 million 123 thousand and 900 tons. And in mid April, crude steel daily output of ten days, although there has been a drop back, but still at a high level. According to statistics, in mid April, the average daily output of crude steel in key enterprises nationwide was 1 million 689 thousand and 100 tons, and the average daily output of crude steel in China was estimated at 2 million 115 thousand and 800 tons. Such a large production and sluggish demand in stark contrast, which is a drag on steel prices down one of the important factors.
3, Tangshan billet inventory declineIt is understood that in April, the Tangshan region began to decline in the stock of major steel warehouse, as of April 28th, Tangshan billet inventory at about 1 million 250 thousand tons, a drop of about half higher than the high point. But some vendors have revealed that some of the resources are being transferred from the warehouse to the traders. In fact, inventories are much larger than statistics, and the inventory of 1 million 250 thousand tons of steel is about 2.5 times that of the same period of last year.In addition, network analyst China industry insight believes the macroeconomic situation, the weakening of steel and steel industry more negative news of the credit crisis will be unfavorable to the billet market outlook. But considering the steel production has been at a loss, the billet has a certain resilience; and before the May Day holiday billet prices fell rapidly, it is possible to pull up the opportunity to play after the manufacturers in a certain way.
2, billet demand has not improved significantlyAlthough has entered the traditional steel demand season, but the actual situation of steel billet did not improve any, some areas even weaker than in March, which makes manufacturers in May market is more pessimistic. At present, on the Tangshan market, the rate of raw material rolling is less than 80%, and the purchasing of rolling mills is cautious and the stock control is low. Terminal market is more weak, billet, material rose slightly, procurement immediately weakened; and after the price cuts, demand has not substantially improved.
