[SMM Weekly Outlook] strong demand supports the risk of callback in the later stage of steel prices

SMM5 9: after the return of this week, the external disk performance improved, Europe and the United States to restart economic activity measures opened up the global market demand, superimposed on the domestic industrial chain terminal production and marketing data in April to pick up, market confidence has been greatly boosted. The macro atmosphere has warmed up, and the heat demand for superimposed steel is not reduced. Steel period shock upward, spot trend to follow, but the range is smaller.

On the demand side, according to the SMM survey, the actual resumption rate of the project under construction at the terminal site has reached 93.2%. Most businesses show that the release of terminal demand is smooth, shipping status preference; pipe factory, heavy truck, steel structure and other industries demand continues to release. The demand of thread hot coil is good. On the supply side, the planned output of snail rolls increased month-on-month in May, and the pressure on follow-up supply is expected to increase.

As far as steel prices are concerned next week, the overall upward trend is slightly weak, but the thread performance may be better than the hot coil. Due to the decline or narrowing of heat coil production, the pressure of supply in the north is on the high side. Coupled with the concentrated release of demand this week, it is expected that there may be convergence next week, the disk may have a callback risk, while the thread spot price in the short term although there is a pullback risk, but the space below is limited. Due to the near future, the library will continue to perform well in terminal demand to support the price.

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