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[SMM hot volume analysis] this week the mainstream market continues to reduce the supply of late pressure may be difficult to continue!
Jul 30,2019 15:53CST
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Source:SMM
The content below was translated by Tencent automatically for reference.

The overall resource arrival volume of hot rolled mainstream steel mills this week totaled 17.1 tons, compared with the previous week 194000 tons-23000 tons, the mainstream market delivery continued to decline last week, market pressure has eased.

Mainly because, on the one hand, since July, traders have continued to place orders from steel mills in an inverted state (from the market since July, the orders have been hung upside down by 60 to 70 yuan / ton since July, and the Shanghai market has been hanging upside down by about 100 yuan / ton since July). In addition, the demand continues to be weak, so even if there is a small amount of replenishment demand, more orders will be placed from the market, so there are fewer orders from steel mills. On the other hand, due to the impact of Tangshan environmental protection and production restrictions, the production reduction of steel mills has been reflected in the market one after another, and from the mainstream market arrival situation above, the resource arrival reduction of steel mills in Hebei is more obvious.

However, the supply pressure will ease or will not last long. The opinion draft of "August Air pollution Prevention and Control Program for the whole City" issued by Tangshan Ecological Environment Bureau on July 28 reveals that although the production limit in August continues, the overall strength may be relaxed. If the proposal is implemented according to the draft, some steel mills will resume production in August, and the output of steel mills will also increase, which will cause greater pressure on the supply situation in the middle and late August.

If you look at the market,

[Shanghai Market] Resources arrived at 71000 tons this week, compared with 85000 tons to 14000 tons last week. Although the arrival of resources continues to decline, but because it has been in a state of accumulation, so the overall market pressure is still large. Among them, the main resources are Angang, Bengang, Shangang and Rizhao.

[happy from the market] Resources arrived at 89000 tons this week, compared with 94000 tons to 5000 tons last week. The arrival of resources continues to decrease, and with the improvement of the recent transaction situation, the market pressure has been alleviated to a certain extent. Among them, the main resources are Yangang and Jianlong.

[Tianjin Market] 11000 tons of resources arrived this week, compared with 15000 tons last week. The arrival of resources continues to be on the low side, and recently due to the impact of Tangshan environmental protection and production restrictions, spot prices in Tangshan area have risen (there is almost no price difference between Tangshan and Tianjin), so some steel mills in Tangshan area suspend shipment to Tianjin and choose to sell more locally, so the market pressure is smaller. Among them, the main resources are Chenggang, China Iron and Steel, Baotou Iron and Steel Co., Ltd.

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