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[SMM Weekly Outlook] Iron and Steel continues to consolidate, waiting for demand verification.
Jul 19,2020 15:47CST
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Source:SMM
[SMM Weekly Outlook: iron and steel consolidation after the market waiting for demand verification] the hot volume is still in a steady recovery state, the inventory in the hands of traders is not high, the willingness to raise price is strong. It is expected to maintain a high consolidation trend next week; next week, it is estimated that iron ore is still dominated by interval shocks. With the gradual "plum" in East China, the demand side is expected to pick up.
The content below was translated by Tencent automatically for reference.

SMM7 March 17: the black department as a whole showed an inverted V trend this week. At the beginning of the week, with the stock market and non-ferrous metals rose sharply, black is also not to be outdone. Iron ore rose more than 5% at one point on Monday and continued to rise on Tuesday, reaching a nearly one-year high of 845 yuan per ton. Threads and hot rolls have also reached high prices for nearly a year. As the stock market fell sharply on Thursday, investment sentiment in the futures market tightened, metal commodities generally fell, while black stocks fell slightly under pressure.

By the close of the last trading day of this week, the thread 2010 contract was up 0.24% from last week to 3725 yuan / ton, the hot roll 2010 contract was down 0.11% from last week to 3748 yuan / ton, and the iron ore 2009 contract was down 0.18% from last week to 824.5 yuan / ton.

Rebar fundamentals continue to weaken in the off-season, reflected in the rebound in inventories. The upward force of thread prices is dragged down by inventory and rain, but with the gradual "plum" in eastern China, the demand side is expected to pick up.

The hot volume is still in a state of steady recovery, safe and sound in the short term, superimposed by the current market mentality preference, the inventory in the hands of traders is not high, and the willingness to raise prices is strong. It is expected that high consolidation will be maintained next week.

Iron ore rose this week after half a week has been a significant pullback, short-term port total inventory continues to accumulate, but the mainstream low-and medium-grade resources shortage has not been alleviated, some merchants have a good attitude. And the actual impact of Tangshan production restriction policy is relatively limited, most steel mills purchase on demand. However, the structural problem of inventory has also been alleviated, and the follow-up drive mainly depends on the finished end, and it is estimated that the iron ore will be dominated by interval shocks next week.

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