Supply and demand analysis of hot rolled steel coils in China

Last week's judgment was basically the same as that of the previous week. The output of hot rolled steel coils fell by 70000 tons on a weekly basis to 2.8884 million tons/week, the lowest weekly output so far this year. It is estimated that the overhaul steel plant will resume production as planned before this week, and the impact of administrative production restriction in the superimposed heating season will be small: the hr coil output last week may be the low point of the whole year (weekly output). However, the steel plant is still in deficit, and it is expected that the output of hot rolled steel coils will not increase significantly in the short term.

On the demand side, the destocking slowed down slightly last week, but still maintained the destocking trend, reflecting the toughness of the demand for hot rolled steel coils; Moreover, as of last week, the output of hot rolled steel coils has declined for six consecutive weeks. However, the bottom of output has already appeared, and consumption in the off-season has slowly declined.