News summary
Steel market fundamentals have stabilized recentlypartycasinofreespins, demand dropped slightly and inventory was destroyed. The new real estate policy boosted market sentiment, and black prices rose. The supply of iron ore is loose and the supply of coking coal is limited. Steel prices are highly volatile, and the impact of medium-term policies needs to be observed. Risks focus on macro policies and infrastructure.
Newsletter text
[The steel market is stable and inventories continue to be depleted] Recently, the fundamentals of the steel market have changed relatively little. Although demand weakened slightly, the overall situation remained stable, inventory levels continued to decline, and steel mills 'production activities slightly improved.
[Differences in performance of building materials and coil plate markets] In terms of specific varieties, the building materials market still maintains a pattern of low output, sluggish demand and low inventory; while the coil plate market reflects high output, strong demand and sufficient inventory. The current market lacks strong fundamental drivers.
[517 Real Estate New Deal Boosts Market Sentiment] In addition, affected by the 517 Real Estate New Deal, market sentiment has been significantly improved, and the overall black market has shown an upward trend.
[Iron ore supply and demand relationship tends to be loose] At the raw material side, iron ore inventories continue to increase, and the supply and demand relationship is gradually developing in a loose direction. The resumption of coking coal production is slow and supply is still limited.
[The impact of medium-term policy implementation will take time to verify] Analysts believe that the fundamentals of the steel market will not change significantly in the short term. Iron ore at the cost end may undergo price adjustments in the medium term. Looking to the policy prospects, even if the rumored policy is gradually implemented, its positive impact on demand will be a gradually increasing process, especially its pulling effect on the real estate industry, which will take longer to observe and verify.
[Market Strategies and Risk Factors] Strategically, investors are advised to remain optimistic about expectations of improving demand under policy support, and expect the market to show a volatile and strong trend. At the same time, market participants should pay attention to macro policy changes, progress of infrastructure construction and potential disturbances at the charge side.
