Analysis of Steel Trend

Analysis of Steel Trend

01 Building materials: prices remained stable and slightly stronger yesterday

 Winter is gradually approaching, and some regions are experiencing a rush to work situation. The willingness to hoard goods has slightly increased, and environmental production restrictions have emerged on the supply side. However, the overall willingness to reduce production is limited. In addition to low inventory and strong expectations, steel prices still have potential to rise.

Building materials prices are expected to stabilize and rise slightly today

 02 Hot Roll: Prices remained stable and slightly stronger yesterday

 The current market atmosphere is relatively warm, optimistic sentiment is spreading, and fundamental speculative demand is increasing. There is still some pressure on the actual supply and demand structure. The effect of the steel mill’s production reduction plan on the total amount still needs to be observed, and short-term strong expectations are driving up strongly.

It is expected that the hot coil prices will be slightly stronger today.

 03 Medium Board: Yesterday’s price volatility was relatively strong

 The mainstream of seamless pipes remains stable, with some showing significant upward trends. The pipe blank is actively exploring an increase, and the support for pipe prices is becoming stronger. Merchants are stabilizing their shipments; Welding pipes are operating at an upward trend, and the price of strip steel is exploring. There is still pressure to meet demand, and the game continues.

It is expected that pipe prices will continue to stabilize and rise today.

 Analysis of Raw Material Trends

 01 Coke: Prices temporarily stabilized yesterday

 Most coke companies are in a profitable position, and steel mills have a strong willingness to raise or lower their coke prices despite poor profits. Currently, the demand for coke under high iron ore is still at a high level, and coke steel continues to play games, resulting in a strong market outlook.

It is expected that coke prices will temporarily stabilize today.

 02 Steel Billet: Prices Stable and Rising Yesterday

 The operating rate of blast furnaces on the supply side is at a relatively high level, with a slight recovery on a weekly basis. Inventory is at a relatively high level, and there has been no short-term decline. Downstream demand has just been released, and with the market warming, speculative demand has increased, and there is still support.

It is expected that steel billet prices will continue to rise today.

 03 Iron ore: Yesterday’s price volatility was relatively strong

 The port inventory has entered the accumulation channel, but the absolute value is relatively low, there is still support for ore prices, and the supply-demand contradiction is not prominent. Although steel mills have suffered losses, their production enthusiasm has not weakened, and the demand for iron ore remains strong.

It is expected that iron ore prices will experience strong fluctuations today.

 Today’s Steel Price Forecast

 The strong expected market continues, continuously digesting the previous gains and maintaining a inertial rise. The probability of a short-term sharp decline is not high, but the current fundamental supply and demand structure has not been substantially improved, and the upward basis is slightly weak. Policies have boosted expectations, and there is still support for optimistic sentiment. It is expected that prices will remain stable and rise slightly today.