Under the dual impact of profit incentives and the pursuit of production scale,steel production is continuing to rebound and hit a new high in the last ten days.In addition to the historical record of social inventory,the supply pressure on the entire domestic steel market has further increased.

According to data from the China Iron and Steel Association's ten-day report,in late February,the national crude steel daily output was 1.912 million tons,up 5.5%month on month,hitting a new high in late February.The ten-day report also showed that the revised daily output for the month was 1823000 tons,a net increase of 120000 tons compared to 170.3 in January.

Hu Yanping,an analyst at United Steel,said that since the end of last year to the beginning of February this year,the domestic steel market has shown a strong upward trend,and the profitability of steel mills has improved,which plays a key role in stimulating the enthusiasm of steel mills in production.

But at the same time,the social inventory of steel is also rising.According to statistics,the total inventory of 25 key markets currently reaches 18.9 million tons,breaking the historical peak of March 5 last year.According to reports,inventory has rapidly climbed to a peak from the low point at the end of last year,due to the increase in steel plant operating rates and the limited demand during the Spring Festival holiday.This undoubtedly adds greater pressure to the steel market,which is already in a downward path.From the perspective of main varieties,the resources of deformed steel and wire rod are increasing at a relatively slow rate,while the resources of plate are relatively slow.

It is reported that some small and medium-sized steel mills have started to reduce the factory price of steel without a significant increase in terminal demand.In addition,some large steel mills have also begun to implement incentives such as price protection and compensation for traders.But this has exacerbated the bearish mentality of the market.Yesterday,the main contract for screw thread futures 1110 fell below the 4800 yuan/ton barrier and closed at 4773 yuan/ton,down 47 yuan/ton from the previous trading day.