Futures steel fell by 2%, and the rise in steel prices is unsustainable

Futures steel fell by 2%, and the rise in steel prices is unsustainable On December 8, the domestic steel market went up and down, and the ex-factory price of Tangshan billet remained stable at 4360 yuan/ton. In terms of transactions, terminal purchases increased on the sidelines, speculative demand was scarce, spot prices in some markets loosened slightly, and transactions performed generally throughout the day. On the 8th, the closing price of snails 4350 fell 2%, DIF and DEA both went up, and the RSI three-line indicator was at 48-60, running between the middle and upper tracks of the Bollinger Band. On the 8th, 9 steel mills raised the ex-factory price of construction steel by RMB 20-30/ton. According to the 237 distributors we surveyed, the trading volume of building materials on Monday and Tuesday was 181,000 tons and 201,000 tons, respectively. In the off-season, demand increased instead of falling, mainly due to the central bank’s RRR cut policy, which promoted short-term steel prices to strengthen. After the favorable policies are digested, the steel market may return to fundamentals. If the downstream terminal purchases shrink in the later period, steel prices may return to a volatile pattern. Post time: Dec-09-2021