Zhaotong Observation Standard Observation Point Quotation Shuntian Shipping Address

Description :

　　When analyzing the trend of the construction steel market in the later stage, steel traders believe that from the current market supply and demand situation, it is expected that the market will not have much improvement in the short term. The price of construction steel market may fluctuate slightly, and there will be no significant upward trend, but the downward space is relatively limited. In addition, steel traders such as Ren Qingping and Li Zhongshuang suggest that market participants should focus on the following factors that affect market trends: firstly, the intensity of effective demand at the end will gradually weaken. At present, it is a severe cold season, coupled with the rebound in some regions of China, downstream construction projects are slow, and some areas have already stopped work. According to industry research, about one-third of ongoing construction projects in China have been suspended recently. From the perspective of project types, housing construction projects have a relatively large proportion of shutdowns.As the Spring Festival approaches, the number of construction project shutdowns will gradually increase in the next two weeks. Steel traders stated that the weakening of effective demand intensity in the construction steel market before the Spring Festival is an inevitable event, and the driving force to support the price increase in the construction steel market is insufficient. Secondly, the increase in market supply has led to increased sales pressure. Entering 2022, the resumption of production by steel enterprises has increased, and the phenomenon of production restrictions and reductions is not as obvious as at the beginning of 2021. The market has strong expectations for increased production, as evidenced by the recent shift in construction steel inventory from decline to increase. According to industry statistics, as of January 14th, the inventory of rebar in major markets across the country reached 3.435 million tons, an increase of 227000 tons from the previous week. Overall, the social inventory of construction steel reached 4.504 million tons, an increase of 222000 tons from the previous week. The situation of "one strong and one weak" has determined that the market price of construction steel is prone to decline but difficult to rise in the later stage, as supply has turned from weak to strong and demand continues to weaken. The third is the adjustment of steel factory prices by steel enterprises. Recently, the prices of iron ore, coke, scrap steel and other steel raw materials have rebounded one after another. For example, as of January 14th, the Platts 62% grade imported iron ore price index was $126.8 per ton, continuing the upward trend since late November last year. The rise in steel raw material and fuel prices has led to a further increase in production costs for steel enterprises, therefore, the policy of setting steel ex factory prices is mainly adjusted upwards. Recently, a group of steel companies raised the ex factory price of construction steel by 30 yuan/ton to 100 yuan/ton. This will lead to an increase in purchasing costs for steel traders, but it will also curb the decline in prices in the construction steel market. The fourth reason is the widening price difference between the markets in the north and south regions. After entering winter, the demand intensity of the construction steel market in the north and south regions varies, and the price gap of steel widens. For example, this week, the price of the 8mm high line in the Guangzhou market was 5120 yuan/ton, while the price of the same specification variety in the Shenyang market was 4700 yuan/ton, with a price difference of 420 yuan/ton. Steel traders have stated that the widening price difference between North and South steel will accelerate the flow of resources from the north to the south, which will have a certain impact on the construction steel market in the southern region in the later stage.

AfterSalesService :

• Zhaotong Observation Standard