Domestic steel prices continued to rise on the 22nd, overall market transactions were weak

Source:XHD Metals    Time:22 March 2021

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On the 22nd, black futures continued to rise. In addition, billet prices strengthened again. Most domestic steel mills actively pushed up, and steel spot prices continued their upward trend.

From the perspective of transactions, under the mentality of buying up and not buying down, market speculative demand has increased, and downstream procurement demand has also recovered. However, due to downstream projects, work has not been fully resumed, so overall shipments are relatively small. In terms of steel mills, because the cost of raw materials squeezes the profit of steel production, most steel mills are willing to support the price and form a strong support for spot prices. In terms of inventory, although the post-holiday inventory has increased significantly, the overall increase is still within expectations.

On the whole, it is expected that domestic steel prices may continue to rise in the short term. However, we need to be wary of the adjustment risk under high inventory pressure caused by insufficient demand follow-up after the spot has risen too quickly.