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[Ferro-alloys.com] The China Federation of Logistics and Purchasing reported on June 5 that rising prices have driven an increase in steel supply. Data show that in May, the steel supply index continued to rise, up by 1.2 percentage points from the previous month. The overall supply for the month increased by 3.5% from the previous month, and the growth rate expanded by 1.2 percentage points from the previous month.

According to China IOT, from the perspective of steel supply in May, price changes run through. In the first half of the year, with the improvement of downstream demand and favorable exports, the finished products continued to rise, driving the profits of steel mills to rise, and domestic steel mills produced production. The enthusiasm is high, and the average daily output of crude steel is at a high level. The PMI production index of the steel industry in May was 51.4%, an increase of 4.4 percentage points from the previous month. According to statistics from the China Iron and Steel Association, in early May, the key statistical iron and steel enterprises produced 2.4178 million tons of crude steel and 2.0614 million tons of pig iron, both hitting historical highs. In the middle of the day, the daily output of crude steel was 2.3794 million tons, a year-on-year increase of 14.37%; pig iron was 2.0405 million tons, a year-on-year increase of 9.18%, which was still at a relatively high level.

After entering late May, the National Standing Committee repeatedly named commodity price increases, and the prices of finished products and raw materials fell accordingly. The gross profit per ton of steel fell rapidly to near the profit and loss line, resulting in a significant narrowing of the profitability of blast furnace manufacturers, and steel mills began to actively reduce production. Discontinuation plan. On the whole, as production profit margins are significantly narrowed, steel mills will continue to increase their production cuts and suspensions in the later period. It is expected that the supply side pressure will be reduced in June.

• [Editor:zhaozihao]