China's steel production and marketing boom

According to the latest production and sales statistics of authoritative departments, crude steel production in China has been rising in recent years, and steel sales have also increased significantly over the past year. The latest data from the National Bureau of Statistics show that crude steel output in April increased by 12.7% to 8.53 million tons, a record high. In April, steel production increased by 11.5% to 10.25 million tons. Chen Kexin said that the national steel inventory index was 114.1 points last weekend, down 2.5% from the same period last year, with construction steel falling by 8.4%. Crude steel production showed double-digit growth, but stock did not increase, indicating that China's steel demand is strong. The monitoring data released on the 23rd of the website showed that the weekly output of threaded steel increased by 316,000 tons to 38152,000 tons, an increase of 724,200 tons over the same period of last year; the social stock of threaded steel decreased by 278,600 tons to 569,830,000 tons, and the stock of steel mills decreased by 104,000 tons to 2044,000 tons.

"On the 23rd day, the third round of coke market rise and fall, most coke enterprises are optimistic about the future market." Luo Chengyang, an analyst at Zhongyu Information Market, said that recent environmental inspections in Shanxi have become stricter and intermittent production restrictions have increased. From the downstream demand, the demand for coke in steel mills is still large in the near future. Therefore, coke market is still expected to rise. For iron ore, analysts at Goldman Sachs Group said China's unexpected increase in iron ore use was exacerbating supply shortages. Goldman Sachs raised its average iron ore price target for 2019 from $81 a tonne to $91 a tonne. In an interview with the Shanghai Stock Exchange newspaper, steel industry experts have said that the rise in iron ore has seriously affected the profits of steel mills and supported steel prices even if demand is still acceptable.

According to the analysis of Guotai Jun'an and other securities firms' research team, the growth rate of capital construction investment is expected to exceed 10% in the second and third quarter, which in a certain extent boosts the market's expectations for the demand for threaded steel. Qiu Yuecheng, director of black research at Everbright Futures Research Institute, predicts that the price of threads will remain high and volatile in the short term.

However, some steel analysts told reporters that the steel market will soon usher in the traditional off-season of consumption, and the next market will tend to shocks. Chen Kexin believes that the domestic steel market will enter a new period of turbulence, generally there will be no unilateral market, for steel prices should not be blindly optimistic.