Steel Coil Market Forecast

After the profits of the steel coil factory are restored, the pace of picking up goods before the holiday is expected to increase for the upcoming May Day holiday. There may be expectations for an increase in molten iron production. Then the price of raw materials is expected to fluctuate upward in the short term, which will affect the formation of finished steel products. Definitely support. In terms of iron ore, affected by the short-term decline in shipments due to the early weather factors in Australia and Pakistan, the arrival volume may decline in the short term, and port inventory may be depleted. Under this circumstance, there is some support on the cost side, social inventories are gradually declining, and steel prices are expected to run strongly. ​
The recent supply and demand fundamentals of iron ore are neutral and weak. On the supply side, overseas mainstream ore shipments have rebounded month-on-month, and non-mainstream shipments have contributed a large year-on-year increase, helping port inventories to accumulate rapidly. On the demand side, downstream steel mills have been relatively cautious in resuming blast furnace production, and hot metal production has basically bottomed out recently. However, after experiencing a sharp price correction in the previous period, the current valuation has fully reflected the previous weakening of fundamentals and the market's pessimistic expectations for terminal demand. Recently, domestic data have been intensively released, superimposed on news about the progress of the additional government bond issuance project. Macroeconomic expectations have improved, prices have stabilized after rebounding, and the short-term may once again show a volatile pattern.
The spot price of coking coal rose, the port price of coke rebounded, and the second round of increases by coke companies was basically implemented. The price trend of coking coal in the early stage was weak, mining enthusiasm was not high, and coking coal production remained at a low year-on-year level; downstream demand continued to be low, and the pressure on coking coal's upstream inventory still needed to be digested. Coke companies are still in a loss-making state, and Coke production continues to be at a low level over the same period; under the background of continued production control, the inventory pressure on coking plants has gradually eased.