In terms of output, the output of major steel mills' HG785D steel plates was close to 3.6 million tons, an increase of 18.8% year-on-year. The average output in April and April was 3.5255 million tons, an increase of 14.7% year-on-year. At the same time, we also noticed that the current operating rate of major rebar steel mills is only 75.41%, which is still not high compared with the operating rate of over 80% in previous years, so the current thread output may still have room for improvement.
On the cost side, after the year, iron ore was continuously affected by dam-breaks and hurricanes, resulting in a large increase in iron ore prices and further supporting the prices of finished materials. However, at present, we believe that the supply-side accident has been Pricein. At the same time, the possibility of less-than-expected reductions will not be ruled out in the future, and there will be hedging of increased production within the mine and buffering of the port's natural inventory. . In particular, it is important to note that the upper level has a clear intention to regulate the price of iron ore. Therefore, although the supply and demand of iron ore improved in 2018 compared with the same period last year, the short-term price again has a small upward probability. The cost-side support for the price of finished materials may fall.
Next: HG785D steel plate contradiction between supply and demand
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