The Steel Market's Weak Fluctuations Are Still Seen There

With the exception of the "good start" on the first day, the steel market has been in a weak state in the latter part of October. The spot price of rebar is only marginally stable, but the overall decline has also exceeded 100 yuan. Among them, the price of snails fluctuated considerably and has dropped below the 3,700-point threshold.

The market will concentrate on the upcoming "20th National Congress" meeting after the Communist Party of China's 11th National Congress, anticipating the introduction of more benevolent policies. The market's performance has remained stable overall because the conference has not yet made any announcements that significantly affect the steel market.

Under the influence of factors like the "20th National Congress of the Communist Party of China" and the epidemic situation, production has recently decreased to some extent in terms of environmental protection and production restrictions. The recent sharp decline in steel companies' profits has also had an effect on the market's enthusiasm for steel production.

The peak season for steel demand is still ongoing in terms of demand. The beginning of important projects has been significantly accelerated, and steel demand is gradually improving, thanks to the steady growth package policy's ongoing implementation and the accelerated implementation of superimposed funds. A total of more than 5 trillion yuan was invested in more than 8,000 infrastructure projects nationwide in September, according to incomplete statistics, indicating a significant increase both month over month and year over year.

The market transaction volume dropped significantly after the holiday as a result of the lack of news that significantly boosted the steel market, insufficient speculative demand, and the lack of enthusiasm among steel traders to purchase goods. In 13 important cities across the nation, the average daily turnover of the building materials markets from October 8 to October 14 was 128,000 tons, down 39,000 tons from the week before the National Day, according to survey data from Lange Steel Network. The average daily shipment of medium and heavy plates from 105 important distribution companies in 15 important cities nationwide was 75,000 tons, down from the week prior to the National Day's average by 7,000 tons.

The traditional "peak season is not prosperous" market has essentially stabilized from the current vantage point, but when compared to the overall steel market trend this year, "Golden Nine Silver Ten's" performance is not too bad.