On January 17, most of the domestic steel market fell slightly, and the ex-factory price of Tangshan ordinary billet fell by 20 to 4360 yuan / ton. The Tangshan steel market was green over the weekend, and black futures fell sharply today. The market sentiment turned from bullish to bearish. With the return of construction workers, the demand further shrunk.

On the 17th, the main force of the futures snail fell sharply, the closing price was 4553, down 2.04%, the DIF moved down to the DEA, and the RSI three-line indicator was at 52-57, running between the middle and upper rails of the Bollinger Band.

In terms of steel: From January to December 2021, China’s crude steel output was 1,032.79 million tons, a year-on-year decrease of 3.0%. In December, the average daily output of crude steel in China was 2.78 million tons, a month-on-month increase of 20.3%. The daily output of crude steel in January is expected to decline month-on-month due to losses and reductions in electric furnace plants.

Downstream: In December 2021, the real estate market continued to cool down. The sales area of ​​commercial housing fell by 15.6% year-on-year, and real estate investment fell by 13.9% year-on-year. At the same time, the growth rate of infrastructure and manufacturing investment was also slowing down.

On the whole, factors such as the increasing downward pressure on the domestic economy and the successive shutdowns of downstream construction sites near the Spring Festival have led to weak market sentiment, further decline in actual demand for steel, accelerated inventory accumulation, and weak short-term steel prices.