Should the steel market go up when the inventory goes down?

In the 12th week of 2020 (2020.3.16-3.20), the national steel composite price index reached 139.0, up 0.90% from last week and down 9.11% from the same period last year. Among them, the lgmi long wood price index is 148.7 points, up 1.93% from last week, down 10.26% from the same period last year; the lgmi profile price index is 145.9 points, up 0.34% from last week, down 9.22% from the same period last year; the lgmi plate price index is 128.0 points, up from last week 0.24%, 8.43% lower than the same period last year; lgmi pipe price index is 150.2 points, 0.03% lower than last week, 6.93% lower than the same period last year.

According to the monitoring data, in the 12th week of 2020, the price changes of 17 categories and 43 specifications (varieties) of steel raw fuel and steel products in some regions in China are as follows: the market price of main steel varieties fluctuated and rose, compared with last week, the rising varieties increased, the flat varieties slightly decreased, and the falling varieties slightly decreased. Among them, 23 varieties were up, 7 more than last week; 9 were flat, 3 less than last week; 11 varieties were down, 4 less than last week. The domestic steel raw material market has been in shock and consolidation. The price of iron ore has risen 25 yuan steadily, the price of coke has fallen 50 yuan, the price of scrap steel has risen 10-85 yuan, and the price of billet has risen 30 yuan.

At present, various countries continue to introduce different market rescue measures, but they still fail to stop the panic atmosphere in the global market. The international bulk commodity market continues to plummet, while the domestic steel futures market remains strong, and the market demands for the future market Full of confidence, the domestic economy has withstood the huge downward pressure. At present, the enterprises are trying their best to resume production, the downstream purchase demand is gradually waking up, the social steel stock which has continuously reached a new high is just beginning to decline, and the later de stocking pressure is still large. At the same time, we need to be alert to the comprehensive efforts of steel production, which will once again suppress the later market.