Last week, the price of black products fluctuated strongly, and the disk price rebounded slightly due to the consumption of finished products exceeding expectations. However, the pressure of inventory digestion and weak demand were expected to limit the rebound of steel prices. The price of raw materials was still stronger than the performance of finished products. Shock. After the second outbreak of the epidemic abroad, European countries have adopted strict blockade measures, economic growth has been suppressed, financial markets have been turbulent, and prices of commodities such as crude oil and precious metals have fallen. The new cases of the epidemic in the United States continue to record highs, and the presidential election is still uncertain and intensified. The domestic 14th Five-Year Plan framework and development goals have shifted to expanding domestic demand and a dual-cycle strategy. Deleveraging and ensuring stability in the real estate market have become the norm. Strictly check the illegal flow of funds into real estate, which is detrimental to the price of black products in the medium and long term, and short-term consumption Maintaining a high level is mainly due to the overwhelming schedule of the pre-engineering projects. Although the steel PMI has rebounded, it is still below the line of prosperity and decline. Then demand will gradually weaken. There is still pressure on steel destocking, and the contradiction between coal supply and demand is difficult to alleviate in the short term , The price remains strong, iron ore supply and demand are loose, short-term high basis and demand support are still there, but the price is at an absolute high level, port inventory has accumulated for 10 consecutive weeks and exceeded the level of the same period, the price downward pressure is greater, let’s take a look , This week, the contradiction between supply and demand of black products continues to ease, and prices will still fluctuate at high levels.

Overall: last week, the price of ferrous commodities fluctuated upwards. Driven by industry fundamentals, steel prices fluctuated upwards, rebar consumption increased more than expected, market sentiment improved, disk prices rose slightly, but total inventory was still high and subsequent consumption Weakening and expected deviations will limit the increase in steel prices; coal coke is running strong, short-term supply and demand contradictions are difficult to resolve, spot prices will remain strong, and iron ore supply and demand will gradually loosen, port inventory has been accumulated for ten consecutive weeks, which is now higher than the same period As a whole, the prices of black products will continue to diverge between strength and weakness this week, and short-term consumption will still be supported.