On December 20, the domestic steel market rose slightly, and the ex-factory billet price of Tangshan Pu raised 20 yuan to 4420 yuan/ton. Due to tight market resources, the bullish sentiment continued at the beginning of the week. However, the downstream terminal purchases were less active, and the black futures generally fell in the afternoon. Beware of the risk of steel price correction.

On the 20th, the main force of snail futures rose first and then fell. The closing price of 4475 fell 1.02%. DIF and DEA continued to rise. The three-line RSI indicator was located at 51-63, running between the upper and middle tracks of the Bollinger Band.

With steel mill inventories declining for 5 consecutive weeks, market resources are tight, and manufacturers are increasingly willing to keep prices. Today, Tangshan steel billet surpassed 4,400 yuan/ton, which further drove the enthusiasm for price increases in the steel market. In the short term, steel prices will fluctuate strongly, and we will continue to pay attention to market transactions. After all, winter demand is expected to weaken. Once the inventory is blocked, steel prices may be at risk of correction.