The demand in the off-season has obvious characteristics, and the steel price may fluctuate and run weaker next week
Date: 2021-12-13
The demand in the off-season has obvious characteristics, and the steel price may fluctuate and run weaker next week
Spot market prices fluctuated within a narrow range this week. At the beginning of the week, the market sentiment was boosted due to the positive macroeconomic conditions, but the mid-week futures went down, spot transactions were weak, and prices were lowered. The demand in the off-season is obvious, and the price of finished products is insufficient. However, the increase in raw material prices and lower inventories play a certain supporting role in the price of finished products.
On the whole, the domestic steel market prices showed a slight consolidation trend this week. At the beginning of the week, due to the positive macroeconomic conditions and the relaxation of marginal regulation of real estate, futures rose, the market sentiment was obviously boosted, and the prices of finished products rose slightly. Affected by the downturn in futures in the middle of the week, the overall demand was weak, and the prices of finished products tended to weaken. Although the good macro news has boosted market confidence, the rise in raw material prices has led to the compression of steel mills’ profits, coupled with the current low inventory levels and other factors, which have played a certain role in supporting spot prices; however, the off-season characteristics of demand are still obvious, and It will take some time for the good news of macroeconomics to reach the downstream. The merchants are cautious, and most of them are to remove the warehouse control risk operation, and the spot price rises insufficient motivation. On the whole, it is expected that the domestic steel market prices may fluctuate weakly next week.
Post time: Dec-13-2021
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