Share Of National Policies On Steel Coil Prices

Influencing Factors: 1. Macroeconomic: Federal Reserve traders strengthened expectations of a September rate cut; China vigorously, orderly, and effectively advanced the construction of projects such as the Ya'an-Xiamen Hydropower Project and the Sichuan-Tibet Railway; and implemented effective measures to stabilize the real estate market. Production restrictions have fallen short of expectations, leading to a volatile market.
2. Supply: This week, molten iron production increased by 9,000 tons to 2.4075 million tons, while production of the five major steel products increased by 64,300 tons to 8.7806 million tons. This slight increase in molten iron is positive for iron ore demand, providing support on the cost side, but continued increases in production of the five major steel products will dampen upward steel prices. Galvanized steel coil prices are expected to fluctuate by another 10-30 yuan this week. If you have any inquiries, please contact us.
3. Demand: Total inventories of the five major steel products increased by 250,700 tons to 14.4104 million tons, while apparent demand increased by 219,700 tons to 8.5299 million tons. While apparent demand increased during the off-season, inventories also increased. This creates a supply-demand imbalance, placing the steel market in a dilemma between rising and falling prices.