The market demand continues to be poor, and it is expected that the rise in steel prices will continue to be difficult.

Source: Jintou.com

Since November, with production cuts and overhauls, low-price steel purchases have improved, and the market has come out of an oversold rebound. A series of positive policies for real estate, such as the Federal Reserve’s interest rate cuts, relaxation of prevention and control measures, and the 16 Financial Measures, have supported the further rise of steel futures and spot prices. However, with the continuous dilution of positive factors, weak actual demand has always restrained the increase, and weak reality and strong expectations continue to play games.

Changes in the price of five major steel products in November

According to SunSirs price monitoring, as of November 30, the average market price of hot-rolled coils was 3,926 yuan/ton, an increase of 6.74% from the beginning of the month; the average market price of cold-rolled sheets was 4,370 yuan/ton, an increase of 0.77% from the beginning of the month; The average market price of rolls is 4896.67 yuan/ton, up 0.20% from the beginning of the month; the average price of color coating market is 7516.67 yuan/ton, up 0.22% from the beginning of the month.

The warm wind of macro policies is blowing, the “Twenty Measures” for epidemic prevention and control optimizes prevention and control measures, and the “Sixteen Measures” for finance have opened the prelude to addressing real estate difficulties. First, support from bond financing is expected to total around 300 billion; secondly, In terms of credit support, major banks have provided 18 domestic real estate companies with a credit line of more than 1.65 trillion yuan; then, in terms of equity financing support, five measures have been adjusted and optimized. Go all out to save the real estate from the capital aspect so as to drive the steel industry.

The demand is still weak. The impact of the epidemic has not receded. This week ushered in a large-scale cooling across the country, and the demand was pre-cooled again. Although the macro policy is positive for real estate in the long run, the demand for real estate is still weak in the short term, and the market is still cautious.

Enhanced cost supportiron orestone,CokeRecently, prices have risen strongly, and some coke enterprises may start the second round of price increase at the beginning of the month, the center of cost will move up, and profits will be compressed. Therefore, it is expected that the winter storage policy of steel mills in the later period will not be very optimistic.

Outlook

The state vigorously supports the economy and boosts market confidence, coupled with the support of raw material costs, the steel market may remain relatively volatile in the short term. However, in view of the current severe domestic prevention and control situation and the sudden drop in temperature, the market demand continues to be poor, and the profits of steel mills continue to decline.

(Article source: SunSir)

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