China's hot rolled steel market is expected to be strong next week

This week, China's hot rolled steel coil market went up overall. Driven by the upward trend of steel billet and futures, the hot-rolled steel coil market ushered in a full-scale surge at the beginning of this week. Due to the preference of pre start and post holiday macroeconomic signals compared with previous years, the merchants' confidence index in the later period was on the high side, and some returned to the market with acceptable purchasing enthusiasm.

However, during the Spring Festival, the number of local deliveries increased, and the merchants were willing to reduce the stock. Since the return of the year, the prices of hot rolled steel coils in many places have been in chaos. Because of the sharp rise, the merchants not only wait and see the market changes, but also flexibly ship goods in combination with their own business strategies. The actual transaction price is mostly determined by the order situation.

In terms of inventory: the actual output of hot rolled steel coils this week was 3,275,400 tons, a decrease of 139,200 tons from last week; the factory inventory was 1,302,900 tons, a decrease of 130,500 tons from last week, and the social inventory was 3.1059 million tons, an increase of 498,600 tons from last week; the total inventory is 4,408,800 tons, an increase of 368,100 tons from last week. Looking at the market outlook, although the raw material coke has a weak momentum and there is a callback, but there is support for ore, etc., the cost side has not changed much for the time being, and the supply of steel mills is expected to be tightened due to the increase in maintenance, and the market mentality is biased towards optimism. China's hot rolled steel market is expected to be firmer and stronger next week.