Market Analysis on 7 Apr, 2020

Alan Yang

Judging from the current supply and demand, the current production enthusiasm of the steel mill is okay. The billet supply has not changed much in the short term, while the downstream rolling mills still maintain a high capacity utilization rate, and the billet demand remains high, so it has certain support for billet prices.

With the release of demand, the billet stocks continued to be dominated by inventory reduction, but merchants were more cautious in their operations.

However, considering that the turning point of the international epidemic has not yet appeared, the global economic pressure has become prominent, affecting the domestic export situation and causing a certain impact on the steel market.

In addition, due to the narrowing of the billet-to-product price gap and the upside-down of the profit of finished products, the production enthusiasm of downstream rolling mills has weakened. Therefore, under the background of upward pressure and bottom support, it is expected that the national billet market will continue to fluctuate in April.