BBN steel: steel prices forecast for next week

This week (1.11-1.15) domestic steel prices fluctuated. Affected by the epidemic situation and the weather, some construction sites and factories in the North shut down. Due to the cost pressure, the ex factory prices of steel plants were mainly high within a week. The sales volume of steel in most parts of the South decreased greatly. Steel plants took the initiative to drop prices and clear inventory, resulting in a sharp drop in steel prices.

Recently, the off-season characteristics of domestic steel market demand began to approach, combined with the recurrence of epidemic situation in Hebei and Northeast China and other factors, the construction sites in most areas were closed ahead of schedule, and the downstream steel demand will gradually begin to shrink in late January. As the Spring Festival is approaching, many steel mills have plans for maintenance and production reduction, and they take the initiative to call back the stock steel prices. Steel mills are unwilling to give in and demand continues to weaken. This is the main feature of the steel market this week.

Next, it is expected that the steel market demand will decline. Under the current situation that both supply and demand are slowing down, the space for the rise and fall of steel prices is narrowing. Recently, the price trend of steel raw materials is firm, the high level of iron ore is still rising, the 13th round of coke rise is rapidly landing, and steel mills are forced to continue to support the price. We predict that in the short term, steel prices will face a pattern of weak supply and demand, and steel prices will fluctuate slightly, with a dilemma of rise and fall.