On January 20, the domestic steel market was mixed, and the ex-factory price of Tangshan ordinary billet rose 30 to 4,440 yuan/ton. As the Spring Festival is approaching, the festive atmosphere is strong, and the market trading atmosphere is deserted. However, today’s loan market quoted interest rate (LPR) was lowered, which gave a certain boost to the futures market.
On the 20th, the main force of the futures snail fluctuated strongly, and the closing price was 4713, up 0.32%. DIF and DEA both went up, and the RSI third-line indicator was located at 57-72, which was close to the upper track of the Bollinger Band.
The steel market fluctuated strongly this week. From the perspective of supply and demand fundamentals, as the market gradually enters a state of closure, the steel transaction volume has shrunk significantly. At the same time, many steel mills have arranged to stop production for maintenance, especially short-process enterprises have made more efforts to stop production due to losses. Overall, the steel market shows a weak situation of supply and demand, and the speed of inventory backlog is accelerating. However, as the central bank, the National Development and Reform Commission and other departments have successively released signals of stable growth, the interest rate quoted in the loan market was lowered on January 20, and the black futures rose as a whole, driving the strong operation of the steel spot market.
On the whole, after the favorable policies are digested, the steel market may return to calm in the later period. With the shutdown of downstream terminals one after another and workers returning to their hometowns on holiday, the market has gradually entered a state where there is no market for prices. It is expected that steel prices will fluctuate within a narrow range in the short term.
Post time: Jan-21-2022