What is the trend of steel market under the influence of the epidemic

Affected by the anti epidemic situation, it is expected that the national economic growth rate (GDP) in the first quarter of this year may "break six". The slowdown of macro-economic growth will cool the steel market this spring, significantly lower than expected.

This spring's steel market may not be as expected. First of all, the gathering of personnel is blocked and the holiday of Spring Festival is extended, which delays the construction and the resumption of work of enterprises. Therefore, the end consumption of steel in this spring is inevitably weakened. Secondly, the slowdown or even stagnation of passenger flow and logistics will slow down the domestic and foreign trade activities of steel products, including its direct export and indirect export. Finally, the weak consumption will inevitably lead to the market suppression of steel and finished materials, and then lead to the negative impact of the whole industrial chain of black goods, resulting in the market risk aversion behavior, and the panic will enlarge these risk aversion behavior, and suppress the steel price below the reasonable price.

"It can be seen that it is inevitable that the steel market will cool down this spring. Both sides of supply and prices will be lower than expected, and some indicators will even decline in absolute quantity."

Although the impact of the epidemic makes the steel market cold this spring, we should also see that this year is the end of building a moderately prosperous society in an all-round way. The goal of the decision-making level to ensure that the annual economic growth runs within a reasonable range will not change, and the steel market will continue to be cautious and optimistic throughout the year.