Hot rolled sheet and coil prices will run choppy in the second quarter

Recently, the supply of steel mills is increasing, the national weekly output of hot-rolled coil is 3.2511 million tons, an increase of 81,000 tons week-on-week, and a month-on-month increase of 231,500 tons, but the average price of hot-rolled coil market fell by 107 yuan / ton in a week, and downstream enterprises are basically based on on-demand procurement under the mentality of “buying up but not buying down”, the market has an oversupply situation, and the market volume is declining.

It is expected that the recovery of market demand and molten iron production after the May Day holiday will become the key factors determining the price, and it is expected that the market mentality will gradually repair after mid-May, and the price is expected to stabilize and recover. However, due to the impact of the sharp decline in prices in the early stage, it is expected that the overall surge in the second quarter is unlikely, and it is basically based on shock operation.