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[SMM analysis] June terminal "steel demand" is expected-terminal demand for cardiotonic agents from SMM
May 26,2020 19:48CST
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Source:SMM
The content below was translated by Tencent automatically for reference.

When entering the plum, it rains one after another, and the terminal just needs an unknown trend in the later stage, which makes the current market "want to break the soul". Recently, SMM conducted a centralized survey on the actual situation of terminal demand-a total of 46.34% of the sample enterprises clearly indicated that the purchase of raw materials in May was higher than that in April. Among them, 41.67% of the housing construction enterprises indicated this phenomenon, while 52.94% of the enterprises in the infrastructure industry had this phenomenon. This is also a more intuitive confirmation of the strength and toughness of steel demand in May.

And according to the research situation, the terminal "steel demand" can be expected in the later stage, and the procurement volume of the terminal site in June is expected to continue to increase compared with May. In the case that the supply is close to saturation, steel prices are likely to show a strong trend in June. The main reason is 2111.

First: in terms of new construction projects. A total of 65.85% of the sample enterprises said that there was a demand for new projects in the next 3 months. Among them, the future demand for new construction in the infrastructure industry is more significant-82.35% of the infrastructure sample enterprises show that there are new construction projects, while the housing construction industry is only about 54.17%.

Second: rush to work demand. A total of 41.46% of the sample enterprises show that there is a rush demand, and there is little difference in the proportion of the housing construction and infrastructure industries.

On the current market is most concerned about the Meiyu weather and financial constraints and other issues. SMM believes that there will be an impact, but it is not enough to be a factor driving prices down.

In the course of the survey, only 4.88% of the sample enterprises clearly expressed concern about the drag of seasonal interference on the construction progress, all of which came from the infrastructure industry (accounting for about 10% of the infrastructure industry). Most housing construction enterprises say that with the exception of civil construction, all other operations can be done indoors, and the progress affected during the weather can be "compensated" by speeding up construction and increasing construction manpower during the weather period.

In terms of funds, nearly half of the sample enterprises (41.46%) said that there was a shortage of funds. However, the capital construction has special debt assistance, and the capital problem of real estate enterprises in the process of property sales will be gradually alleviated, so the overall impact on construction is also relatively limited.

 

Details of the survey results:

Source: SMM

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