On December 23, the domestic steel market fluctuated weakly, and the ex-factory price of Tangshan Pu’s billet remained stable at 4390 yuan/ton. The market opened in early trading, the snail futures rebounded from the low level, and the spot market steadily fell. From the perspective of transactions, the purchasing sentiment in the spot market in the morning was deserted. With the rebound of futures in the afternoon, transactions in some regions improved. The downstream mainly focused on just replenishment, and speculative demand was sluggish.

On the 23rd, the main force of the snails oscillated strongly. The closing price of 4479 rose 0.56%. DIF and DEA went up in both directions. The RSI three-line indicator was located at 51-61, running between the middle and upper tracks of the Bollinger Band.

In terms of demand: the apparent consumption of large varieties of steel this Friday was 9,401,400 tons, a week-on-week decrease of 474,100 tons.

In terms of inventory: this week’s total steel inventory was 12.9639 million tons, a week-on-week decrease of 550,200 tons. Among them, the steel mill inventory was 4.178 million tons, a week-on-week decrease of 236,900 tons; the steel social inventory was 8.781 million tons, a week-on-week decrease of 313,300 tons.

This week, the steel market fluctuated and operated weakly. Entering late December, as the domestic temperature further drops, steel demand has shrunk. At the same time, severely polluted weather in the north is frequent, and the output of steel mills is still suppressed. This week, the supply and demand of the steel market were weak, the decline in inventory narrowed, and the price of steel fell slightly.

Looking forward to the later stage, on the one hand, winter steel demand is becoming weaker, coupled with the return of funds at the end of the year and other factors, recently merchants have cut prices for shipments. On the other hand, the northern steel mills have stricter production restrictions, tight market resources, and uneven specifications. The possibility of significant price cuts by merchants is low. In the short term, steel prices continue to fluctuate and run weakly.