Why insist on self-discipline to control production and reduce inventory? China Iron and Steel Association: Reducing inventory as soon as possible is the top priority for the current industry to ensure efficiency

Jinshi Futures, May 10th, < br > 1. From the correlation between production and inventory, price, and efficiency, for every 1% increase in production, inventory increases by 0.43%, and inventory increases by 1%, the price decreases by 0.47%, and the efficiency decreases by 0.54%. < br > 2. From the perspective of past years, there is a significant negative correlation between the inventory level of enterprises and the sales profit margin. The higher the inventory, the lower the sales profit margin. The current enterprise inventory is at the highest level in the same period in history. < b > Reducing the inventory as soon as possible is the top priority for the current industry to ensure efficiency . < br > 3. The current steel inventory still exceeds 4.0% in the same period in 2020 and 13.9% in the same period in 2021, while apparent consumption has been significantly lower than the level in 2020 and 2021. < b > Steel companies have room to further reduce inventories.