China's steel market prices are expected to fluctuate

After the Spring Festival holiday, affected by factors such as the early release of demand and the high price of raw materials, the price of steel in the Chinese market has risen significantly, and it is expected to fluctuate in the later period.

Demand for steel increases, and steel prices are expected to stabilize.

This year is the first year of the "14th Five-Year Plan". The macro policy revolves around China's big cycle as the main body and the expansion of domestic demand as the strategic basis. Coupled with the comprehensive control of the epidemic, downstream industries such as infrastructure, real estate and manufacturing are expected to start construction ahead of schedule. Steel demand will continue to grow, and steel prices in the Chinese market are expected to maintain a relatively stable trend.

The release of steel production capacity remains at a high level, and the balance of supply and demand in the market is under pressure.

The daily output of crude steel has fallen from January, but has maintained a year-on-year growth. As the demand has not yet fully started, the balance of supply and demand in the market will face pressure in the later stage.

Market expectations are on the rise, and steel stocks have increased significantly.

After the Spring Festival, with the warmer weather, China's epidemic prevention and control situation has stabilized, the steel market is expected to rise, and steel stocks have also increased. From the perspective of social inventory, in early February, the social inventory of five major steel products in 20 cities was 11.34 million tons, an increase of 1.61 million tons from the previous month, an increase of 16.5%; from the perspective of corporate inventory, the key statistics of steel companies’ inventory in early February was 14.47 million tons, an increase of 710,000 tons over the previous ten days, an increase of 5.1%. With the intensive construction of downstream industries, demand for steel has gradually started.