Minsheng Securities: The absolute inventory of steel is relatively low; pay attention to the recovery speed of demand after the holiday

On January 27th, Jinshi Data reported that Minsheng Securities' research pointed out that the absolute inventory of steel is relatively low, and attention should be paid to the speed of demand recovery after the holiday. As the Spring Festival holiday approaches, the supply and demand for steel is weakening. Compared to the same period last year, steel production has decreased, but the year-on-year demand is positive. The absolute amount of steel inventory is low, and the accumulation speed is slow. If work resumes quickly after the holiday, the supply and demand for steel will be relatively tight. The "old-for-new" policy continues, and there is some recovery in the real estate funding side and new construction, which is expected to boost long-term demand for steel. On the raw material side, iron ore inventory is high, and the daily output of molten iron is declining, which is expected to benefit the finished products. Attention should be paid to the recovery of steel companies' profits in the future