freegameearncrypto| Iron ore inventories fell by 840,000 tons: demand-side supporting risks suggest high inventory pressure

Newsletter summary

The inventory of imported iron ore in port 45 decreased by 840000 tons to 146.75 million tons compared with the previous month, and the average daily dredging capacity increased to 3.03 million tons. The profit rate of steel mills dropped to 52%, and the operating rate of blast furnace increased to 81%.Freegameearncrypto.5%. Attention should be paid to policy regulation and off-season production of steel enterprises.FreegameearncryptoThe potential impact.

Text of news flash

[iron ore stocks have dropped more than expected, and the pressure on the port to remove the storage remains] this week, the iron ore stocks imported from Port 45 were 146.75 million tons, 840000 tons lower than before the festival, with an average daily dredging volume of 3.03 million tons, a slight increase of 20, 000 tons compared with the pre-festival period. There are 92 ships in port, 9 fewer than before the festival, and the total inventory in the port area is 160.53 million tons, a decrease of 1.64 million tons compared with the pre-festival period. Although the total inventory of imported mines has dropped more than expected, the core of the reduction lies in the pressure on the port, and the inventory changes in steel mills and ports are not significant. In the later stage, with the increase of overseas ore resources to the port, it is expected that the port resources will rise synchronously, and the steel mill link is expected to maintain a low inventory level after the replenishment of the stock before May Day. For port inventory, it is still difficult to perform effectively and continuously. In the later stage, we continue to maintain the high operation of the total inventory of imported ore, and pay attention to the pressure of high inventory on ore prices.

On the demand side, the average daily hot metal output this week was 2.345 million tons, an increase of 38000 tons over the previous month; the operating rate of blast furnaces in 247 steel mills was 81.5 percent, an increase of 0.9 percent from the previous month; and the utilization rate of blast furnace ironmaking capacity was 87.67 percent, an increase of 1.43 percent compared with the previous month. The profitability of steel mills declined for the first time, falling 0.9 percent from the previous month to 52.0 percent. The resumption of production by steel mills this week is stronger than expected, while blast furnace construction has reached the level of the same period last year, and there is still support on the ore demand side. It should be noted that the increase in raw materials in April is stronger than that of steel, and the profits of steel mills are compressed again, which is also reflected in the profit margin, laying hidden worries for steel enterprises to further resume production in the later period. however, short-term steel enterprises still have expectations of resuming production under the guidance of pre-profit level, and ore demand remains on the rise in the short term.

Risk hints: reducing energy consumption, crude steel production regulation and other policy factors disturb the production rhythm of steel enterprises, and then affect the demand for raw materials of steel enterprises. It is possible to limit the output release of steel companies by compressing superimposed profits again in the off-season.