Economic data for April released! Phase steel diving! Steel prices continue to bottom out?

The spot price of the steel market is chaotic today. On the whole, the stable market occupies the mainstream, and a few markets actively make up for the increase, driving the overall average price to move up slightly. The market turnover is average, no obvious improvement compared with yesterday, and the market confidence is insufficient.
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The April economic data was released today. On the whole, the supply data related to steel is still on the high side. Among them, China’s average daily output of crude steel in April was 3.088 million tons, which was basically the same as the 3.0881 million tons in March. This also means that there was no reduction in production in April, making crude steel output still maintain a growth of 4.1% from January to April. In addition, the growth rate of molten iron production from January to April is still higher than that of crude steel, which also explains the strength of iron ore prices. Since May, the market production reduction and policy reduction have increased the pressure on steel production reduction, but the actual effect is that due to the rapid decline of raw coke and coking coal, steel mills are swinging between profit and loss, and the motivation for production reduction is still insufficient. If the situation weakens in May, it is not ruled out that crude steel production in May will decline to a certain extent compared with April, but in response to the current demand situation, it is still necessary to see a better improvement in the relationship between supply and demand.
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From the perspective of demand, the growth rates of real estate investment, infrastructure investment, and manufacturing investment among the three major investments have all declined month-on-month, reflecting insufficient demand for steel.
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From the current point of view, the impact of today’s economic data on the market is limited. The adjustment from the fall of futures to the spot is not large. Under the influence of steel mills in some areas and the market’s anticipation of rising prices, the spot is still resilient. In the short term, the steel spot market is mainly volatile, and there is still a chance for some markets to rebound, but the range is not large.