supply pressure has not been alleviated or will be in the near future
As can be seen from the above table, the total amount of resources received by the mainstream hot rolling mills this week is 157000 tons, compared with 218000 tons and 61000 tons last week. Among them, the Shanghai market: 53000 tons of resources arrived this week, a month-on-month ratio of-16000 tons. In the second week after the festival, while the volume of resources arrived at the level of the long Association, the overall impact of upside down is still below the average volume of goods received this year (70,000 tons), and the fundamental pressure has eased slightly compared with last week. Among them, Angang, vertical and horizontal and Rizhao and other resources to reduce the arrival of steel mills, mainly due to environmental protection production restrictions, traders still place orders upside down, at the same time, the recent tightening of transport control also had a certain impact. Lecong market: 93000 tons of resources arrived this week, month-on-month-45000 tons. The sharp reduction in the arrival of resources is mainly caused by the accumulation of goods in the first week after the festival, and the basic return to the resource level of the long Association this week, as well as the initial embodiment of environmental protection production restrictions and reductions. At the same time, it is worth noting that although the arrival of resources has basically returned to the long Association level, the inventory pressure in the Lecong market is already relatively large (as of October 12, the inventory is 604800 tons), and in the case of the recent decline in demand, this part of the resources still lead to increased supply pressure, and the fundamental pressure has not slowed down. Tianjin market: 11000 tons of resources arrived this week, flat on a month-on-month basis. The shipping of steel mill resources is relatively stable, and the fundamentals are relatively stable. Among them, mainly in Chenggang, Baotou Iron and Steel and Benxi Iron and Steel. Overall, as far as the current supply and demand fundamentals are concerned, it is still in a relatively weak pattern, coupled with the fact that new production capacity has been put into production one after another in the later stage, prompting the supply pressure to continue to rise, so the market pessimism is pervasive and the overall spot price pressure is not reduced. But in this pattern, it is still worth looking forward to, if the recent macro data performance preference, there will be a slight boost to spot prices.
