The steel demand in the peak season may be hot!

Demand has always been one of the main driving forces for steel prices to rise. In the first half of this year, under the influence of factors such as the multi-point spread of the domestic epidemic and the global economic recession, the overall steel demand was weak, and the peak season of "Gold, Three, Silver and Four" demand was also overshadowed. After the strong expectations were defeated, market confidence was damaged, and steel prices began to decline at an accelerated rate from the beginning of May.

After entering the second half of the year, with the gradual improvement of the epidemic situation, driven by a series of "steady growth" policies of the state, demand began to pick up. On August 15, the national economic operation data released by the National Bureau of Statistics showed that the main economic indicators continued to recover in July, and indicators such as fixed asset investment and industrial added value closely related to steel continued to rebound, thus driving the gradual recovery of steel demand.

Off-season demand slowly picks up

Yesterday, the National Bureau of Statistics released the latest national economic data. The scale of investment in fixed assets continued to expand. From January to July, it increased by 5.7% year-on-year and 0.16% month-on-month.

From the market point of view, after entering July, the domestic epidemic situation has basically been effectively controlled, and with the issuance of all special bonds at the end of June, all parts of the country have begun to seize the construction window period. According to incomplete statistics, a total of 3,876 major projects were started nationwide in July, with a total investment of nearly 2.4 trillion yuan. Such a huge investment quota and project start-up will gradually form an effective physical workload.

From the perspective of steel shipments, July shipments improved significantly. Taking Beijing as an example, according to the monitoring data of Lange Steel Cloud Merchant Platform, the 10 major players in the Beijing building materials market had an average daily shipment of 7,007 tons in July, an increase of 5,933 tons in June. 1074 tons, an increase of 18.1%.

At the same time, the social inventory of steel in July this year also continued to decline. According to the monitoring data of Lange Steel Cloud Business Platform, in July, the social inventory of steel products in 29 key cities across the country experienced a "five consecutive decline", a cumulative decrease of 2.035 million tons, a drop of 14.25%. In July last year, the social inventory of steel was in a continuous upward trend, with a cumulative increase of 553,000 tons in the "five consecutive increases". This drop and one increase also indirectly confirms that the demand in July this year is "not weak in the off-season" and continues to recover.