There have been a lot of recent positive news, including the intensive introduction of a package of economic stabilization measures by multiple departments, and the continuous improvement of the epidemic situation in various regions.Carbon Seamless Steel Pipe.On May 31, the State Council issued the notice on printing and distributing a package of policies and measures to stabilize the economy. The notice proposed to orderly release high-quality coal production capacity on the premise of ensuring safe, clean and efficient utilization. Establish and improve the incentive and restraint policy mechanism for coal production. Accelerate the handling of coal mine guarantee procedures in accordance with laws and regulations, and support qualified open-pit and underground coal mine projects to release production capacity on the premise of ensuring safe production and ecological safety. Adjust the nuclear capacity increase policy as soon as possible, support the coal mines with safe production conditions to improve their production capacity, accelerate the release of high-quality coal production capacity, and ensure the safety of power, electricity and coal supply in summer.
At the beginning of this year, domestic steel demand fell sharply due to the epidemic and real estate. However, under the national “strong stimulus” policy and the “dynamic zeroing” policy of the epidemic, we will see the repair and improvement of the real estate side, the implementation of infrastructure projects, and the resilience of the export and manufacturing industries. The resumption of work and production after the epidemic will also promote the improvement of steel consumption month on month. Therefore, under the situation that the reduction of crude steel output is not under great pressure, Steel prices are expected to gradually strengthen. At the same time, some steel mills and coking plants have reduced production due to losses, which also helps to alleviate the pressure of supply and demand in the steel market.
The sharp rise in iron ore prices is related to the overall macro environment. Shanghai has been unsealed, national measures to stabilize growth have been intensively introduced, stock markets and commodities are rising, and steel futures and spot goods have also begun to rebound. The downstream feedback is that the demand is not good, but the steel inventory fell a lot last week, and the demand and confidence are recovering, especially the confidence. Before that, the steel mills had not reduced production much, and the supply of scrap steel was also insufficient, driving the price of iron ore up.
Post time: Jun-07-2022
