Factors influencing steel coil prices this week:
1. Macroeconomic factors: The outbreak of conflict is beneficial to the energy sector. Next week is a week of macroeconomic expectations, with anticipation for important domestic meetings and lingering uncertainties internationally, resulting in a generally cautiously optimistic outlook.
2. Supply side: This week, pig iron production increased by 28,000 tons to 2.3328 million tons, while the production of the five major steel products decreased by 79,800 tons to 7.9677 million tons. Production remained stable with a slight decline, and a rebound in production is expected after the holiday.
3. Demand side: Total inventory of the five major steel products increased by 1.3427 million tons to 18.4611 million tons, and apparent demand rebounded by 1.2686 million tons to 6.625 million tons. Apparent demand is expected to continue its upward trend.
4. Raw material side: Steel mills are pressuring prices to replenish spot inventory, putting pressure on iron ore prices; spot prices for coal and coke are stable to weak, offering limited support from the raw material side.
5. Jingtai Steel's coil plant is located in Shandong, mainly producing PPGI, PPGL, GI, and GL. This week, galvanized steel prices fluctuated between $2 and $3.
