Upstream and downstream of steel pipe market

This year, the market of black steel pipe is a combination of policy and macro market. In the second half of the year, the focus of steel mining is still focused on macro expectations and policy implementation, mainly including domestic production limit policy and domestic and foreign demand under the background of the epidemic.

For the steel market, at present, limited production did not see tightened or relaxed signs, once the apparent demand better, it is bound to drive steel prices from the low rebound. Last week the steel price fell below 5000 yuan/ton platform, more is the catharsis of pessimism. In the limited production policy under the support, rebar still has the value of the dips.
Excluding emotional factors, there is no basis for continuous breaking and falling rectangular steel pipe after the market: first, the supply side limited production and emission reduction has not been relaxed; Second, the current demand performance is indeed weak, but the overall real estate completion chain data remains high, regulation on steel demand will not produce an immediate effect; Third, due to the repeated epidemic and extreme weather in the early stage, the construction progress slowed down, but with the improvement of the weather and the effective control of the epidemic, the construction progress in many places was significantly accelerated. At present, the construction rate of the project is 76.89%, 18.48 percentage points higher than that of the previous phase. In view of the forecast of the supply and demand situation of structural steel pipe, lately steel prices is to increase momentum.
Into late August, with the promotion of crude steel production limit, supply decline is an indisputable fact, autumn to early winter demand can be realized is the key to the evolution of steel prices. In other words, the focus is shifting from the supply side to the demand side. After the double fall of supply and demand, the government will be more intensive to ensure the stability of the price of various measures released, the current steel price does not have a deep fall basis. Iron ore prices remained under pressure despite a sharp decline in supply easing. Coal is not effectively released due to supply, short-term supply is still tight, the price is strong operation. Under the guidance of the reduction of mild steel tube output, the iron ore demand is relatively fixed, while the uncertainty on the demand side comes from overseas demand, which is based on the global economy and the overseas epidemic situation. At present, the repeated overseas epidemic situation has cast a shadow on the iron ore demand. On the whole, under the expectation of increasing supply and decreasing demand, structural contradictions in the iron ore market have been alleviated, and the trend of price center of gravity will continue.