Speed of resumption of work, confidence in construction steel prices

Speed of resumption of work, confidence in construction steel pipe prices

Boosted by the intensive launch of huge investment plans in various provinces and cities across the country, infrastructure-related sectors such as construction, building materials, steel, coal, and nonferrous metals continued to be popular in the A-share market. However, the spot prices of various upstream raw materials for infrastructure are diverging. Market participants and researchers in the cycle industry said that from the latest resumption of work, construction steel is relatively strong.

Market participants generally believe that although the macro perspective is good, from some high-frequency data, it is still a long time before the full resumption of production and resumption due to the impact of the epidemic. The demand for a variety of industrial products is weak, and inventory has reached a new high.

The latest information from the agency shows that cement prices in Henan, Guangxi and other places have fallen. Conch Cement announced a number of reductions in cement prices.

Comparatively speaking, the demand for construction steel has a tendency to start, and the current situation of resumption of construction sites in cities such as Hangzhou in East China is better.

Corresponding to this, the volume of construction steel transactions has increased. Huachuang Securities’ steel research team introduced that since the beginning of March, the nation s building materials transaction volume has increased for the first time, and has returned to about 1/3 under normal conditions. .

Institutional analysts believe that the growth rate of national infrastructure investment this year will significantly exceed expectations, and real estate investment will also help, resulting in stronger demand for construction steel such as rebar.

Post time: Mar-26-2020