Steel market face to face: the fundamental contradictions are prominent, and the board has weakened the price

The theme of the plate and strip varieties will be the online live exchange of the steel market face to face. This period will be analyzed from the perspective of short-term market trends in their respective regional markets, the current stock situation in their respective regional markets, and the current operational sharing of their respective markets.

Introduction of the participants

The meeting was chaired by Hao Yu, analyst of the Strip Division of Shanghai Steel Alliance E-commerce Co., Ltd., and invited Li Shunru, general manager of Tianjin Runze Steel Processing Co., Ltd., Jiang Yeli, general manager of Hubei Hualiyuan Metal Materials Co., Ltd., and He Hong, general manager of Xinjiang Taihua Steel Co., Ltd., to participate in the discussion.

Review of distinguished guests' wonderful views

General Manager of Tianjin Runze Steel Processing Co., Ltd Li Shunru

The total inventory of the market where the enterprise is located is on the high side, and the accumulation situation is still continuing. However, the pressure on the enterprise's own inventory is not large, and the standing inventory has been reduced compared with previous years, basically in a state of fast production and fast sales.

Market: Although the steel mills in North China are in a state of loss, there is almost no production reduction action. The overall situation of downstream orders is not good, which also leads to the current market inventory pressure is obviously high, and it is also necessary to pay attention to whether steel mills will reduce production and the US interest rate cut. From the price point of view, the market price is already at a low level, and the risk of continued downward adjustment has diminished.

Jiang Yeli, general manager of Hubei Hualiyuan Metal Materials Co., LTD

Market: 7-8 months steel fundamentals overall deviation, coupled with the impact of new and old national standards to increase market pessimism, price decline more obvious. Infrastructure real estate has not improved, manufacturing-driven increase limited, demand side overall deviation expected. Despite expected production cuts, overall raw material supply loose, production cuts may form new negative feedback.

Operation: Choose high-quality steel mills and broaden terminal channels, if there is a spot can try to meet high altitude.

He Hong, general manager of Xinjiang Taihua Steel Co., LTD

Inventory: 新疆的整体库存处于稳定状态，总体库存较小。

Market: The current poor demand is still the contradiction between supply and demand. The production of steel mills is still maintaining the state of high capacity utilization. On the demand side, the terminal operating rate is already less than 50%, and if exports fall in the second half of the year, the contradiction will be further prominent. Steel mills do not reduce production coupled with social inventory accumulation, prices will continue to maintain a downward trend.