Steel stocks continued to decline. As of press release, Chongqing Iron & Steel (01053) fell 8.7% to HK$0.63; Angang Steel (00347) fell 6.11% to HK$1.23; and Ma On Shan Steel (00323) fell 2.68% to HK$1.09.
The Zhitong Finance App learned that steel stocks continued to decline. As of press release, Chongqing Iron & Steel (01053) fell 8.7% to HK$0.63; Angang Steel (00347) fell 6.11% to HK$1.23; Maanshan Steel (00323) fell 2.68% to HK$1.09; and China Oriental Group (00581) fell 1.68% to HK$1.17.
According to the news, according to Mysteel, as the Spring Festival holiday approaches, downstream projects enter the final stage, and the steel market trading volume gradually shrinks. Most steel mills have lost money. Coupled with the lack of pressure on internal inventories, the willingness of steel mills to raise prices has increased. Recently, independent electric arc furnace steel mills have been shut down one after another, the production of blast furnace steel mills has fluctuated slightly, and the overall price of raw fuel has stopped falling and stabilized. In the short term, both supply and demand in the steel market are weak, and cost support is evident. The rise in black futures has driven a slight increase in some parts of the steel spot market, but overall steel prices are still fluctuating in a narrow range.
Minsheng Securities pointed out that in the short term, demand for steel is seasonally off-season, and consumption of building materials and panels has declined across the board. On the production side, due to shrinking profits, production of the five major steel varieties continued to decline. Among them, production of building materials declined even more from week to week. In terms of inventory, the factory warehouse declined slightly from week to week. On the one hand, due to a decline in production, and secondly, due to winter storage, the factory warehouse moved forward; the social warehouse continued to build warehouses, mainly affected by the decline in seasonal demand. Overall, both supply and demand for steel fundamentals are weak. Iron and water production on the supply side is low, prices on the raw material side are under pressure, and part of the profits are being transferred to the finished materials side.