What are the reasons for the price rise of SA36 material in February

What are the main reasons for the price rise of SA36 material in February?

1. In terms of inventory: due to epidemic factors and the rising cost and price of SA36 material, small and medium-sized traders did not stock up too much during the Spring Festival, resulting in a smaller than expected increase in market inventory after the festival. The policy also requires that the steel output must be reduced.

2. The rising price of raw materials and ores will drive the cost of steel mills upward; the limited profit level will affect the increase of SA36 material production. Judging from the current stable high price of iron ore and other raw materials, it will continue to rise in 2021. Industry insiders said that the supply and demand of iron ore in 2021 will be in overall balance. But due to the continuous recovery of overseas demand, the global iron ore is still in a tight balance, and the price is unlikely to drop significantly.

Overall: according to the investment and infrastructure situation under the epidemic situation in 2020, and even the recovery growth of downstream demand, there is a high probability that SA36 material demand will continue to grow in 2021.