The market situation of SA36 hr coil is relatively optimistic

On the eve of the Spring Festival, SA36 hr coil market ushered in a wave of rising trend, and the strong trend of overseas bulk market during the festival boosted the confidence of hot rolled steel coil market after the festival. In the SA36 hr coil market, more mainstream merchants began to work. More than half of the warehousing terminals will return to work, and since migrant workers return to their hometowns less than in previous years, the recovery of normal operations in various regions will accelerate.

After the Spring Festival this year, the situation of SA36 hr coil is relatively optimistic. In terms of raw materials, it is difficult for iron ore coke to change to a high level, and the cost of steel plants is limited. The ex factory price of SA36 hr coil is still easy to rise but difficult to fall. Although the inventory of SA36 hot rolled coil has increased, it is lower than that of the same period last year, and most of them are at a low level, which also supports the market price.

From the downstream perspective, although the Spring Festival is a traditional off-season for China's manufacturing industry, the local new year policy has enabled the inter festival consumption of manufacturing industry to be maintained and the post Festival start-up is expected to be accelerated. In addition, the recent policies to stimulate automobile consumption have been introduced intensively, the market's consumption expectations for the downstream industry are relatively optimistic, and the domestic epidemic prevention and control is good. Manufacturers have stronger confidence in the market price of SA36 hr coil.