Next week steel prices go like this!

Steel price influencing factors

This week, steel prices fell below a near four-year low, reaching 3309, and there was a correction on Friday. In summary, the main reasons for the decline in steel prices this week are these.

First, the failure of macro expectations, the lack of market confidence, in the experience of the meeting policy expectations, the pessimistic mood of the market has also begun to release and then suppress the decline of steel prices, market confidence has been gradually disintegrated.

Second, the national panic about the new and old national standard switching of thread continues, and the old version of rebar is sold at a large loss, curbing the upward trend of steel.

Third, under the downward cycle of the industry, the traditional off-season is superimposed, and there is a phenomenon of strong supply and weak demand. This week, molten iron production fell 0.04 million tons to 2.3961 million tons, high-speed molten iron to support the charge, with iron ore and coking coal prices fell, steel production costs gradually declined, the apparent demand for large steel fell 247,400 tons to 8.784 million tons on Friday, the demand fell sharply.

Steel price forecast next week

01 Building materials: Weak rebound in prices next week

This Friday, the apparent demand for steel fell, and the domestic macro policy was moderate, benefiting more steel prices. Steel prices fell below the low level of nearly four years, the weekly line is still in a downward trend, there is a short-term recovery demand, to stage a rebound. Building materials prices are expected to rebound weakly next week.

02 Sheet metal: Price weak rebound next week

The overall demand for plates fell this week, with weak reality dominating. Hot metal production fell by 0.04 million tons, which supported the raw material end. Approaching the Politburo meeting, capital’s policy expectations remain. It is expected that the spot price of the plate will be weak next week and have a certain rebound.

03 Strip steel: Prices rebounded slightly next week

This week, the overall strip steel down 80-120 yuan, the spot market sentiment continues to be pessimistic, the overall decrease in activity, the off-season effect is still dominated, the fundamental pressure is larger, but after the technical side overfell, there is technical rebound momentum. Strip steel spot is expected to rebound slightly next week.

04 Pipes: Prices will continue to be weak next week

This week, the price of the tube billet fell 100-150 yuan, the demand for pipes remained weak, the price was driven by the double pressure of the disk and the fundamentals, the operating pressure increased significantly, and the profits of businesses were difficult to maintain. At present, the price of seamless pipe still has room to cover the fall, and the welded pipe has a certain price sentiment, and the trend has not stopped. It is expected that the spot price of pipes will continue to be weak next week.