The cost support is obvious, and steel prices may be suppressed before rising

Gold ten futures June 5th news, according to the futures daily, the main contract prices of rebar and hot coil in May first rose and then fell, maintaining above the 60-day moving average. In late May, boosted by the policy, steel prices continued to rise, making steel mills resume production momentum enhanced, from 2.30 million tons/day at the beginning of the month to 2.368 million tons/day, the cost side to provide a certain bottom support for steel prices. From the perspective of output structure, 137 sample steel mills rebar weekly output rose from 2.3179 million tons at the beginning of the month to 2.3947 million tons, 37 sample steel mills hot coil weekly output increased from 3.19 million tons at the end of last month to 3.2266 million tons. In terms of end point demand, the demand for building materials in the north is better than that in the south and is limited by the flood season. In May, there were frequent easing policies to boost real estate, but the actual demand for steel did not improve. Looking ahead to the market outlook, the total inventory of rebar is still in the process of elimination, and the inventory in the field is currently low; the output and inventory of hot-rolled coils are high, but the turnover is good. After a round of coke increases and decreases in the early stage, the profits of steel mills have rebounded, and the profits of steel mills are 60-100 yuan/ton. We believe that the industry is still in the process of cautious resumption of production in June, and the cost support is obvious. Steel prices may be suppressed first and then raised.