Steel Article

Steel market situation in China
17 December 2022 19:37

Recently, the domestic steel spot market topick up slightly, but the demand side is still a lack of strong support. Theperformance impact of each macro side fundamentals, China steel priceswill be back shock pattern.

According to the monitoring, the domesticspot steel prices being "first growth and stable". Last week,affected by the good news of the macro side, the steel market confidence hasbeen boosted, and steel prices generally rose slightly. However, due to thedeep-rooted Steel City "off-season" effect, rising steel prices andlack of demand for support, the price of steel products stabilized again.

According to the analysis, in the sheetmarket, the overall situation is a sign of strength, reversing a previousdownward trend, however, the Wuhan individual market is still slightly dropped.The market analysts believe that the macro data show that the economy has beenwarmer, the capital market is also strong, which boosted the confidence of thesteel market. Steel plate prices with the potential to rise, but"high" shipments rose difficult. The weather is getting cold, thedownstream steel enterprises procurement reduce the total demand is weak, orthe more obvious. Also the consolidation of hot rolledcoil prices stabilized, the dominant trend of the market has beendivided, the Shanghai market is basically stable, Tianjin, Beijing and othermanifestations of decline. Even up areas, the businessmen's willingness toraise steel prices are still relatively low. At a time when the year-endseason, merchants repayment pressure greater surface tension of funds,large-scale "stockpile" phenomenon is unlikely to occur.

In the construction steel market, overallprices were slightly up. However, with the northern part of the region onceagain snowfall, the downstream demand is further suppressed, the turnover ofthe steel will be blocked. Think some steel trading business, taking intoaccount the prices of raw materials such as iron ore, steel billets is stillstrong, the other specifications of the individual market segments lessresources, and the bottom of the construction steel market there is still somesupport for limited downside, in short term, steel prices are still vulnerablefluctuations.

Relevant agencies said that some downstreamindustries of steel began to exhibit varying degrees of signs of warming, whichis more or less conducive to the increase in demand for steel.But it must beremembered, steel prices have been more than a year of decline, businesseslingering fear, more cautious mentality, plus funds face superimposedadjustment factors, the China steel will continue to maintain a weak state.

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