Analysis Of Factors Affecting Galvanized Steel Coil Market This Week

Influencing Factors:
1. Macroeconomic Outlook: The US favors steady economic growth and a relatively loose monetary policy, but the outcome may depend on later releases of US PMI and inflation data. The market awaits the outcome of the September interest rate meeting and remains on the sidelines. China's Ministry of Commerce will introduce several measures to expand service consumption in September. China also announced its opinions on promoting high-quality urban development, but production restrictions have fallen short of expectations. This week, galvanized coil prices fluctuated between 10 and 30 yuan.
2. Supply: Hot metal production decreased by 6,200 tons to 2.4013 million tons, while production of the five major steel products increased by 65,500 tons to 8.8461 million tons. This slight decrease in hot metal production, while still at a high level, supports demand for iron ore and provides cost support. However, continued increases in production of the five major steel products are holding back upward steel prices.
3. Demand: Total inventories of the five major steel products increased by 268,400 tons to 14.6788 million tons, while apparent demand increased by 47,800 tons to 8.5777 million tons. Despite the increase in apparent demand during the off-season, inventories have also increased. This supply-demand imbalance makes a rally in the steel market difficult. Jingtai factory mainly exports products: PPGI, PPGL, GI, GL. If you have any needs, please contact us.