Why the steel prices quickly rebound

From the point of view of the profits of the long-process steel mills, with the rise of the steel price in the last two weeks, the profit of the custom curtain wall has increased by about 50 yuan, and now it reaches about 250/ ton. With the gradual recovery of downstream consumption, the bf operating rate has been rising for 7 consecutive weeks. According to survey data, by the end of last week, the blast furnace operating rate of 163 steel mills rose from 66.99% in the previous week to 68.09% last week, an increase of 1.64%. The operating rate of 247 steel mills was 78.86%, up 1.51% from the previous week and down 3.2% year on year. The utilization rate of greenhouse garden was 78.81%, increasing by 1.01% on a month-on-month basis and decreasing by 3.6% on a year-on-year basis.

The average daily production of molten iron was 2.2038 million tons, with a month-on-month increase of 28,200 tons and a year-on-year decrease of 82,100 tons. From the production profit of electric furnace steel, since the middle of March, with the rapid decline of scrap price, “spiral waste difference” rapidly widened, from 1000 in the middle of March to the current 1400, electric furnace steel profit significantly improved, some areas of the ton of steel profit of 300 yuan. This undoubtedly stimulates the production enthusiasm of multispan greenhouse from the electric furnace steel operating rate, the electric furnace steel operating rate in the same period last year at about 70%, under the stimulation of profits, the electric furnace steel operating rate and the capacity utilization rate have a larger space to rise. According to the survey data, as of April 9, the operating rate of 53 electric steel mills nationwide was 54.48 percent, an increase of 7.42 percent over the previous week. Capacity utilization was 49.59 percent, up 2.45 percent from the previous week.

With the full resumption of the downstream industrial enterprises, the profitability of steel mills also improved, steel mills have the power to increase production and supply, it is expected that the steel supply will continue to rise; the future supply pressure of structural glass curtain wall will further increase. From the data, although the stock fell month-on-month, the overall level of the steel stocks is much higher than normal. Therefore, this year, high inventory will become the norm, under the high inventory, the pressure on the price is still large and the rebound space is limited.