01
Review of the steel market trend in the first half of 2023
In the first half of 2023, steel prices showed an "N" type trend:The first quarter of the high season steel prices up: the economy entered the recovery track in the beginning of the year, driven by the recovery of macro expectations, more infrastructure projects and real estate sales, steel prices rose in the first quarter；In the second quarter, steel prices showed a "V" shape trend, and the price center moved down from the first quarter: affected by overseas bank thunderstorms, overseas recession expectations strengthened, while domestic economic recovery momentum began to slow down, and policy expectations turned to weak recovery. In terms of industry, the contradiction between supply and demand in the steel market appears. Driven by high supply and weak demand, steel prices entered the downward channel and stabilized until the end of May.Entering June, driven by the market's strong expectation of policy stimulus in the off-season and the continued destocking of steel inventories, steel prices showed a slight rebound.
02
Huayang News-New ERW production line put into production
Huayang has 16 welded steel pipe production lines, including 13 ERW welded pipe production lines and 3 LSAW steel pipe production lines. In order to meet the needs of customers for small diameter welded pipe, Huayang invested two new high-frequency production lines: 89 line and 127 line, production range: 73MM-127MM. After this production lines put into production , Huayang can achieve full coverage of ERW steel pipe diameter from 73MM-660MM and LSAW steel pipe from 406MM-1422MM. It is expected that the production and sales volume will reach 2 million tons this year. In addition, Huayang's new processing workshop will be put into use in August, which can greatly ease the current steel pipe processing pressure. To achieve the characteristics of Hua Yang fast delivery.
03
Steel market Outlook for the second half of 2023
Global economic uncertainty remains high: When the Fed's rate hike cycle ends determines when the global liquidity inflection point arrives and affects market risk appetite.Considering the recent performance of US economic data and the Fed’s statement, it is more likely that the Fed will stop raising interest rates after raising interest rates in July.This will delay the global liquidity inflection point to the third quarter of this year or even later, pushing the upward inflection point for commodity prices.The benchmark scenario is that the Fed will not cut interest rates this year. This will lead to the market risk appetite remains low, all kinds of asset allocation to the defensive.
