Domestic demand for elbows continues to weaken

Domestic steel stocks have risen instead of falling, showing that domestic terminal demand is extremely weak. According to industry insiders, the continued decline in fixed asset and real estate investment growth, the continued decline in the prosperity of downstream industries such as machinery and automobiles, and the large-scale high temperature and heavy rain throughout the country have had a significant adverse impact on the domestic steel market. Analysts said that the two major obstacles that have always plagued the growth of fixed asset investment, namely the lack of investment willingness and the difficulty of funding sources, are expected to be gradually resolved. It is expected that the effects of later policies will continue to appear and provide strong support for investment growth. The market demand is also expected to pick up. However, the short-term reality is still that under the situation of investment decline and industrial downturn, domestic elbow demand continues to weaken, social inventories are difficult to further decline, market expectations and actual conditions are in a state of departure, and the short-term weakness of steel prices is still difficult to change. According to the author's analysis, on the one hand, there is no room for the steel market to continue to fall at this stage, and the probability of bottoming out in the later period increases. Therefore, the pressure on ore prices has been reduced. On the other hand, affected by the supply and demand factors of the elbow, regardless of the later increase or decrease of the mine price, the demand side purchasing spot resources is the most effective way to avoid risks. For this reason, the decrease in the inventory of imported mine ports and the estimated amount of resources arriving in the port It can be seen that the shortage of available spot resources determines that the market price is unlikely to drop significantly, and the short-term is in a sideways state. Judging from the recent iron ore market period and spot situation, the overall market continues to be under-reduced conditions, and the shock pattern has continued. The mid-board market was operating steadily and weakly this week. In all regions, some specifications fell weakly, ranging from 10-80 yuan/ton. The decline in East China was significantly narrower than last week, with 10-40 yuan/ton. Demand is still sluggish, but the current inventory levels of merchants are relatively low, especially in cities such as Ma'anshan and Wuxi, affected by the suspension of production and maintenance of steel mills, some specifications are tight, and prices have rebounded slightly.