High turnover is not smooth, steel prices short still face downward pressure

Two sessions are coming to an end, the focus of the market after the macro and steel inventory pressure, due to the early steel prices too fast to pull up, period of profit-taking increased steel plate, prices continued to fall, spot offer to follow the decline, merchants discount shipping profit, procurement continues to be cautious, high transaction is not smooth, short still face downward pressure.

Phase steel continued to fall, spot generally down

Steel futures continued to fall today, with futures snails down 123 at 4589, futures coils down 116 at 4818, iron ore down 57.5 at 1040.5, coking coal up 25.5 at 1516.5 and coke down 5 at 2312.5.

Spot aspect, 20 markets out of 24 rebar markets fell 20-50, 20mmHRB400E average price of 4686 yuan/ton, 26 yuan/ton lower than the last trading day;

The average price of 4.75 hot rolled coil was 4893 yuan/ton, down 42 yuan/ton compared with the previous trading day.

Among the 24 markets in the middle board, 19 markets fell 10-70. The average price of the 14-20mm general board was 4927 yuan/ton, down 23 yuan/ton compared with the last trading day.

The central bank continued to zero release, focus on liquidity phase tightening pressure

During the two sessions, the People's Bank of China maintained a stable monetary policy and carried out a reverse repurchase operation of 10 billion yuan today. Due to the expiration of 10 billion yuan of reverse repurchase, zero release and zero return continued to be achieved in the market.At present, the overnight repurchase rate and the seven-day repurchase rate are relatively stable, but we need to pay attention to the pressure brought by the new local bond issuance after the two sessions on the market capital.

PPI year-on-year increase expanded, a significant bulk increase

The consumer price index (CPI) shrank 0.2 percent year on year in February, narrowing the decline, while the producer price index (PPI) expanded to 1.7 percent, according to the National Bureau of Statistics.Among the major industries, ferrous metal smelting and rolling processing industry rose 14.1 percent, an increase of 4.2 percentage points.The global bulk commodity this round rise is obvious, push up the general rise of industrial goods prices.From the broad background of global easing, the sustained rise of large quantities is expected to continue to push up the PPI recovery, reflecting the relatively strong industrial product prices this year.

Iron ore arrivals fell slightly

In the latest week, 21.58 million tons of iron ore arrived at ports across the country, down 450,000 tons from the previous week, according to Hifleet.Shipments of iron ore fell globally, with 14.53m tonnes shipped to China in the latest week, down 2.25m tonnes from the previous week.From the current iron ore supply point of view, the price is still supportive.On March 9, the Platts 62% iron ore index fell 10.55 dollars to 163.6 dollars, with a monthly average of 174.03 dollars, still at a high price. The periodic decline was mainly affected by profit taking in the capital market, with little fundamental change and limited downside space in the future.

Billet small storage, the overall turnover is weak

Tangshan and Changli square billet factory quotation steady, small accumulation of inventory.The stock of billets in the three warehouses totals 739,400 tons, an increase of 101,400 tons.Among them, Xiangyu Zhengfeng warehouse billet stock 318,400 tons, reduced by 0.04 million tons;Haiyi Hongrun warehouse billet stock 363,100 tons, an increase of 0.1,800 tons;Zhenxiang steel billet inventory of 57,900 tons, steady.Due to the recent two days of Tangshan area production restriction strength and strict, the price has a certain support, but the overall transaction is light, the downstream timber is weak, billet still has downward space.

To sum up, steel prices are facing phased adjustment after too fast pull up, the macro monetary policy is relatively stable, the two sessions after the new local debt issuance, market liquidity has tightened pressure.Raw material end cost support slightly weakened, iron ore high down, coke even fell 300.In terms of supply and demand, it is still in the storage stage, but the inventory growth has slowed down. The terminal acceptance of the high price in the early stage is not high, so the short-term adjustment pressure is faced. It is expected that the steel price will continue to fall tomorrow, with a decline of less than 50.