China's steel market price or cash machine in October

According to information provided by Shaanxi Logistics Information Center, Baosteel, Wuhan Iron and Steel, Anshan Steel, Shougang, and other factories have recently raised their steel prices in October. Industry insiders believe that domestic steel mills generally raised the ex-factory price of steel products in October, but there is no suspense, but there is no demand in the downstream. Given the significant volume, the price change in the steel market in October remains to be seen.

Although some domestic regions have recently adopted energy-reduction measures for energy-saving and emission reduction compliance, which has caused steel prices to fluctuate frequently, it has a major impact on construction steel, and has relatively small impact on plates and sections. The current pressure in the steel market is still on consumer demand.

According to the analysis of Shaanxi Metals Steel Trading Network, although recent restrictions on power cuts and steel prices in some regions in China have formed strong support for steel prices, there are still unfavorable or uncertain factors such as poor sales in the market.

First, the current end-market demand for steel products has not changed significantly. Market sales are still insufficient to support a further increase in steel prices.

The second is from the domestic macroeconomic data in August, the economic growth rate is stronger than expected, the *** will accelerate its appreciation, the CPI has a new year-on-year growth, the credit surpasses expectations and the currency growth has rebounded. This series of economic data will increase the expectation of interest rate hikes and bring uncertainty to the market.

Third, with the arrival of the “golden nine silver ten” in the traditional sales season of the property market, the government’s re-adjustment of the control policy is likely to take place after the implementation of the national macro-control policy.

Fourth, after the local government has basically completed the “Eleventh Five-Year Plan” energy-saving and consumption-reducing target, the degree of power cuts will surely be reduced.

In summary, factors such as better macroeconomic data, limited power consumption, and increased expectations for real estate secondary regulation will all play a role in suppressing the sharp increase in the steel market price in October.