On February 7, the domestic steel market prices rose across the board compared with the pre-holiday period (January 30), and the ex-factory price of Tangshan common billet rose by 100 to 4,600 yuan/ton. With the help of futures and steel mills, traders generally raised prices. In terms of transactions, since most merchants in the market have not officially started construction, transactions in mainstream areas are sporadic, and overall shipments are less.

On the first day after the holiday, the steel market price achieved a “good start”, mainly due to the frequent occurrence of good news in the week before the holiday, but the steel price did not fluctuate much due to the closure of the market, and it was postponed to make up after the holiday. On the macro level, since this year, many departments have successively released signals of steady growth, including moderately advanced infrastructure investment. In terms of cost, the price of raw materials and fuels before the festival was strong, and the cost of steel production increased. In terms of supply and demand, the accumulation rate of steel before the holiday is slower than in previous years, and the market is optimistic about post-holiday expectations, and steel futures will repair the basis upward.

In the later stage, infrastructure investment is expected to exert force, but the expansion of the manufacturing industry should also be slowed down, and the real estate market will remain sluggish. The Spring Festival holiday is superimposed on the influence of the Winter Olympics, and many steel mills have implemented maintenance and production reductions. During the Spring Festival, both supply and demand in the steel market were weak, and the accumulation of steel inventories accelerated. In the later period, we will pay attention to the resumption of work and production of upstream and downstream enterprises in the steel industry chain. In the short term, since demand has not really started, the rise in the spot market is mainly driven by sentiment.