On the supply side:
the supply of five major steel products this week was 9.1656 millions tons, an increase
of 141,500 tons, an increase of 1.6%. In the terms of inventory, the total inventory of
five major steel products this week was 23.8651 million tons.
An increase of 339,600 tons or 1.4% week-on week. Among the five major steel products,
the plate varieties are leading the warehouse, and the overall accumulation speed is expected
to slow down. Among them, the inventory of steel mills increased by 1.9%, and the social inventory
increased by 1.3%, the market mentality is cautious, and the enthusiasm for purchasing is limited,
which makes the pact of factory distribution slown down slightly from the previous month.

In terms of consumption 
the weekly consumption of five major varieties increased by 14.9% this week; among them,
the consumption of building materials increased by 38.9% month-on-month, and the consumption
of plank materials increased by 4.0% month-on-month.
From a fundamental point of view, in terms of inventory, this week’s plates are expected to take
the lead in destocking, and building materials are expected to encounter and inflection point next
week to reduce inventory. The inventory pressure of steel mills and the market is low, which has
certain support for the market mentality; on the demand side, at present the progress of the resumption
of downstream prjects is also steadily picking up.
Although housing construction is troubled by funding and other issues and the labor service situation
is relatively poor, the start of municipal infrastructure projects and the labor service situation have
improved significantly, and the overall demand has recovered significantly month-on-month.

On the whole, the domestic macro market mentality is positive to a certain extent, coupled with
the gradual improvement of fundamentals, the pressure on supply and storage is not strong, supporting
market expectations, which in turn makes market price fluctuate.