Steel production is high, iron ore easy to rise difficult to fall!Steel prices continue to bullish!

Iron ore prices have been surging to near five-year highs.Abundant liquidity in the market will boost the trend of commodities. As the impact of the rainy season diminishes, terminal demand may improve on a sequential basis. In particular, the rush of real estate and infrastructure construction in the peak season will drive the rapid decline of steel inventory, which is conducive to the release of iron ore demand.Cost rises, profit of iron and steel enterprise drops more apparent.

Theoretical research on billet cost: On the 14th, the cost of hot metal without tax was 2,539 in Jin-Ji steel enterprises, which was equivalent to about 3,208 in billet with tax, and the factory price of tangshan billet was 3,420, with a profit of about 212 yuan/ton.The cost of molten iron inventory is expected to be about 2414 (excluding tax), which is equivalent to the billet with tax cost of about 3067, and the profit is about 353 yuan/ton.

Some blast furnaces in Tangshan Steel Plant are overmaintained at 19, with an operating rate of 91.24%.Compared with last week, up 3.82%, some steel blast furnace resumed production, operating rate reached the peak of the year.

This week five varieties of steel inventory in the last week down trend, and this week the north heavy rainfall reserve demand slowed, transportation related.Belongs to the stage small tired warehouse, with the acceleration of the city still has the space to drop the warehouse.

In the first half of this year, the steel industry gradually shrugged off the impact of the epidemic, and resumed work and production in an orderly manner. Production and operation maintained a steady momentum of operation, and steel enterprises gradually recovered their economic benefits and showed strong anti-risk capability.In August, the high temperature in the north and the rain in the south weakened the spot demand for steel, but the rebar and hot-coil futures prices fluctuated upward, which was more supported by the macro positive stock market rising, production cost increasing and the expectation of future demand increasing. The high temperature weather still restrained the spot demand at present.But long-term analysis, in the monetary easing, increase investment in infrastructure, expand the tone of domestic demand, "gold nine silver ten" spot steel demand can be expected.