Focus on the steel industry data (November 25)-The market has a positive trading atmosphere, destocking has expanded, and consumption has continued to rise

In terms of supply, the supply of major steel products continued to decrease from the previous month to 8,970,700 tons, a month-on-month decrease of 2.7% and a year-on-year decrease of 16.5%. Judging from the same month-on-month data, the current five major types of steel products are still at a relatively low level, and the reduction in production has expanded compared with the previous period. Judging from the current production status of the company, the core reason for the company’s production reduction is still limited production and floating losses. It has entered the heating season and limited production during the Winter Olympics. There are production reduction/stopping plans in various parts of the north, although the impact of production restrictions in East China and South It is lower than that in the north, but near the end of the year, seasonal supply shrinkage will still be heard, mainly in electric arc furnaces and billet craft companies. On the whole, the current production enthusiasm of enterprises is not high, the overall output changes are not large, and the overall operation continues at a low level.

In terms of inventory, the total inventory of large varieties of steel products remained depleted this week, with a decrease of 3.5%. Among them, the factory inventory decreased by 138,200 tons from the previous week, and the social inventory decreased by 435,300 tons from the previous week. This week’s steel mill inventories and social inventories continued to deplete. The core reason was that spot prices fluctuated strongly and the enthusiasm for market transactions was boosted. In addition, the market that had fallen by 1,000 yuan in the previous January caused traders to dump their goods and recover their profits. As a result, most traders’ inventories have fallen to a relatively low level, and the pace of just-needing inventory has accelerated in the near future. On the whole, the five major types of steel inventory will continue to be depleted while steel prices are relatively stable. However, when the spot price has a downward trend due to the depressed mood, the destocking range will show a narrowing performance.

In terms of consumption, the weekly consumption of large varieties increased to 9,544,200 tons this Friday, an increase of 85,700 tons from the previous month, of which building materials increased by 129,900 tons, an increase of 2.9%; and the panel materials decreased by 44,000 tons, or a decrease of 0.9%. In terms of varieties, the overall performance of panels is weaker than that of building materials. The consumption of building materials has rebounded for two consecutive weeks, but panels have declined. The main reason is that the current rush period for East China and South China is gradually coming to an end towards the end of the year, and the demand for steel has been released. Coupled with the recent news of the relaxation of real estate and capital policies, some traders have speculative demand, and the decline in sheet metal is mainly due to the weak seasonal demand. On the whole, the increase in short-term consumption is mainly due to the accelerated pace of outbound shipments and the positive impact of market trading atmosphere, and the overall demand for steel remains weak.