It is expected that Q345C carbon steel price oscillation will be stronger in the fourth quarter

The iron and steel industry is in the new normal of four high and one low, that is, high output, high inventory, high demand, high cost and low profit. Reducing the procurement cost of the steel industry has become the main theme of this year. The price of imported iron ore and coking coal is still high, and the cost of steel industry is also high, no exception for Q345C carbon steel. The performance of the steel industry in the first quarter was not good, the second quarter was worse due to the impact of the epidemic, the third quarter was slightly better, and the fourth quarter improved. This is roughly the case.

Q345C carbon steel and other steel consumption continued to grow. China's fixed asset investment was 38 trillion yuan, down 0.3% year-on-year. The decline rate was 1.3 percentage points lower than that from January to July. The industrial added value increased by 1.4% from January to August, and decreased by 0.4% from January to July.

Looking forward to the later steel market, from the perspective of demand, the current macro economy is further improving, the capital situation is improving overall, and the domestic manufacturing demand continues to be good. Work is rushed before the end of the year. The demand intensity of the construction industry is expected to further increase, coupled with the improvement of overseas exports, the overall demand remains at a relatively high level. From the perspective of supply, due to factors such as stricter environmental protection and reduced imports, the pressure on the later sales side will be eased, which is conducive to the decline of high steel inventory. The price of Q345C carbon steel and so on steel materials is expected to fluctuate strongly in the fourth quarter. On the one hand, concerns about environmental protection restrictions or exceeding expectations have led to increased market speculation; on the other hand, concerns about the US election and global epidemic changes may lead to turbulence in the global commodity market.