Overseas supply shocks, steel prices continue to rise

Overseas supply shocks, steel prices continue to rise On March 3, the domestic steel market generally rose, and the ex-factory price of Tangshan common billet rose 50 to 4,680 yuan/ton. Due to the general rise in international bulk commodity prices and the surge in domestic iron ore futures, speculative demand has become active again, and today’s steel futures market continues to strengthen. On the 3rd, the main force of the futures snail fluctuated and strengthened, and the closing price was 4880, up 0.62%. DIF continued to move up and moved closer to DEA. The RSI third-line indicator was at 56-64, running between the middle and upper rails of the Bollinger Band. The downstream terminal and speculative demand are active this week, and there is still room for a rise in the steel market transaction volume next week. This week, the steel mills expanded production moderately, and the inventories in the mills fell slightly, and they may continue to resume production steadily next week. This week, iron ore prices rose even more, and the cost of supporting steel prices strengthened. In addition, the situation in Russia and Ukraine has led to an increase in international commodity prices, which also boosted domestic commodity prices. At present, the fundamentals of supply and demand in the steel market are preferred, but there is no obvious gap in supply. The situation in Russia and Ukraine still has a great impact on commodity prices, which requires continuous attention. At the same time, we should be alert to the rise of speculative speculation in some black varieties, and the regulators may strengthen the policy of “guaranteeing supply and stabilizing prices”. In the short term, steel prices may continue to run strongly, and it should not be excessively chased. Post time: Mar-04-2022