In March, the construction steel market are expected to be strong, and the average price of hot rolled coil steel rose by US$35/ton month-on-month, lagging behind the increase in raw materials.
From a macro perspective, China has strengthened the iron ore reserve capacity and improved the iron ore resource guarantee capacity. At the same time, China will continue to do a good job in ensuring the supply and price of steel commodities. In terms of the international situation, the Russia-Ukraine incident have increased a considerable impact on steel prices, driving up international manufacturing costs.
Judging from the output of steel mills, the steel production side will be affected by high raw material prices and lack of transportation, and even the sales side will be mainly affected by transportation.
From the perspective of inventory levels, although the current inventory are much lower than that of the same period last year and the overall pressure are limited, it is more difficult to destock the inventory caused by the tightening truck transportation. Inventory returns to the situation of the increase cycle.
Throughout April, the complex international situation have a huge impact on steel products, and the production and sales costs of the domestic hot rolled coil industry chain will rise significantly, which will provide strong support for the prices of galvanized steel coil and galvalume steel coils. At the same time, the macro policy are obviously favorable to steel commodities, and the market expectation are strong. China's steel prices are expected to surge in April.