Decline in the domestic steel market has become a major cause

The transaction is difficult to warm up, the pressure of business sales increases, and the year-end repayments are concentrated. These three points are the three major inhibitors of the domestic spot steel market. According to the latest market report provided by the well-known steel information agency “My Steel,” the domestic steel market has seen a further decline after a brief recovery.

According to monitoring, in the most recent week, the "My Steel" integrated steel price index fell by 0.75% from last week, and the domestic steel spot market fell more obviously. Before this, the steel market had a slight upward trend for a short time, but although steel prices rose, there was no obvious rebound in market transactions, which had a greater inhibitory effect on the market. At present, the sales pressure of merchants begins to increase. In addition, the forward prices of domestic steel products are also continuing to decline, which is a blow to the confidence of businesses. As the approach of the end of the year, the market's willingness to “pay back money” increased, and in the case of poor transactions, the merchants had to lower their bids to obtain goods.

According to the analysis, the flat-sheet-based flat steel prices are declining, with hot-rolled products and galvanized products falling significantly. In the hot rolling market in the past week, the market in Tianjin has seen the most significant drop. The gloomy downstream demand is the most important factor affecting the local price decline. As prices fell, transactions in low-cost resources in the market improved slightly. Some businesses have indicated that the lack of incentives for price increases in the current market, coupled with the recent weakness in prices of steel products, the spot market will only weaken.

In the galvanized product market, the price of the Chengdu market led the drop, and the continuous arrival of resources and slow market inventories was a factor; as the weather turned cold and the local market demand deteriorated, it was also a factor, and the price cut became one of the few. A realistic choice in marketing options. Some companies have learned that due to shipping restrictions, the current market is not willing to take goods, social inventory "increment" will not be great, plus price promotions, in any case always digest a certain inventory "stock" , so the market has a relatively limited callback.

The long steel market dominated by construction steel is affected by the low price of steel products. The spot price is also generally declining. The market price in Chongqing has a large decline, and the market is in poor condition. The demand side is willing to purchase local resources. Weaker. With the continuous replenishment of resources in the surrounding markets, the inventory level in the local market has risen. This has caused greater sales pressure on the merchants. The prices of resources that were originally quoting higher prices are gradually falling, and the phenomenon of “high reporting and low output” is more common. .

According to the sample survey of major steel mills and traders conducted by “My Steel”, in the judgment of the next major trend of the two major steel grades, rebar and hot coil, almost all the respondents believe that they are down or consolidate. , think that less than 1% increase. This at least shows that the market mentality is "look for the market."