Policy: The People’s Bank of China has decided that the 2022202201111111 financial institution funding reserve is 01.5 months and 20th (the percentage of the already invested% of the reserve investment funds).

The relevant person in charge of the central bank said that the orientation of prudent monetary policy has not changed. The RRR cut is a regular operation of monetary policy. A part of the released funds will be used by financial institutions to return the maturing medium-term loan facility (MLF), and some will be used by financial institutions to supplement long-term funds to better meet the needs of market entities.

Fundamentals: Due to the phenomenon of rushing work in downstream construction sites in the south, the recent demand for construction steel is still resilient. It is expected that the inventory will fall further this week, which will also support steel prices. However, as the winter storage cycle is getting closer, in order to avoid the downside risk brought by the high winter storage price, the merchants are not willing to increase the price. Short-term steel prices may fluctuate strongly, and focus on actual transactions in downstream terminals.