Dec 04,2020 Steel Knowledge.
On Tuesday, the national construction steel transaction volume monitoring data showed that the transaction volume has decreased. Specifically, the snails continued to be weak and fluctuated during the opening period today, and the domestic construction steel spot market prices generally fluctuated and fell. From the perspective of transactions, futures prices continue to weaken, and the market has a strong wait-and-see sentiment. Most merchants reported that today's transactions were generally relatively ordinary. The weakening of futures spot prices has affected the market mentality. Most businesses reported that speculative demand in the market has weakened significantly today, and downstream procurement demand has also slowed down.
At present, in terms of mentality, the apparent consumption of construction steel has declined, the market is worried about the seasonal weakening of steel demand, and most merchants are actively shipping cash. In terms of steel mills, the current overall production profit of steel mills is acceptable, and steel mills are more active in production. However, considering the impact of production restrictions during the heating season, at the same time, due to the enthusiasm of traders to obtain goods and the overall weakening of downstream steel demand, the resources of steel mills are exported. The library has been blocked, and it is expected that the room for output changes is limited. In terms of inventory, the demand in the northern region is gradually weakening, the pace of northwest and northeastern materials going south is accelerating, the rate of market inventory depletion has slowed down, and some regions have begun to accumulate inventory.
On the whole, under the off-season effect of demand, the contradiction between supply and demand in the steel market has begun to accumulate, and it is expected that domestic steel prices may run weakly in the short term.