The recent adjustment of steel prices, we believe that there are mainly the following reasons:
One, with the weather turns cold. The downstream demand of steel gradually enters the low season, and the seasonal edge of demand falls down. Statistically, the recent steel trade volume gradually enters the low season, and the seasonal edge of demand falls down.
With the decline of the market's expectation of heating production limit and the more pessimistic economic expectation of next year, the futures price has a greater resurgence, which leads to the attenuation of downstream replenishment and delivery intention.
After the continuous drop in price of steel within 1 month, it begins to rise rapidly.
Today, the price of billets has risen for about 60-80 RMB per ton. Many steel traders and factories take the means of stopping quoting and selling stock today and wait for rising of price.
Meanwhile, As the weather slowly gets colder and haze becomes lighter, environmental protection policies are weakening. It also helps the rising of price.
In a word, price of steel will keep rising in the next period.
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