Industry insiders: Cold and hot rolled steel sheet market is expected to continue the rebound trend

November is a very unusual month for the cold and hot rolled steel sheet market. With the rapid cooling down of the market, the trading is light, and the prices continue to fall, the operator's "fear of falling" mood arises spontaneously, and most of the products are delivered at reduced prices. However, after entering December, the cold and hot rolled steel sheet market has changed, prices have stopped falling and rebounded.

According to the current operation of cold and hot rolled steel sheet market, there will not be much change in the short term. Prices are expected to stop falling, stabilize and rise steadily. At present, the factors affecting the market of cold and hot rolled steel sheet are mainly reflected in the following aspects:

One is the factors that affect the market supply of cold and hot rolled steel sheets. In the early stage, after the price of cold and hot rolled steel sheet has fallen sharply, the selling price is now in a low position, almost equal to the price of construction steel. The profit of steel sheets has obviously shrunk. Some steel mills have lost money and their enthusiasm for production is not high. In addition, with the implementation of the policy of limiting production in the heating season, the release of production capacity of some steel enterprises is hindered, and some production lines in some steel plants are affected by the shortage of hot metal, resulting in lower production. However, since the beginning of this year, a number of hot-rolled steel sheet production lines have been put into operation, and the supply is expected to increase. Generally speaking, there are both advantages and disadvantages affecting the supply of cold and hot rolled steel sheets. There are uncertainties in whether the supply of cold and hot rolled steel sheets increases or decreases in the latter stage, which need to be followed up.

Secondly, the factors that influence the change of ex-factory price policy of steel mills. As the spot market prices of cold and hot rolled steel sheets continue to fall, and the decline is expanding, market transactions are light, the sales situation of steel mills is not good, orders are reduced, steel mills therefore close to the market and timely adjust the ex-factory price policy. Recently, a number of large-scale steel enterprises issued a factory price policy in December, generally lowering the ex-factory price, of which the ex-factory price of cold-rolled and hot-rolled steel sheets was generally lowered by 150 yuan/ton to 200 yuan/ton. The steel mill lowered the ex-factory price, and traders were cautious when they were short of the market. Most of them were selling at reduced prices, which led to the continuous decline of cold and hot rolled steel sheet prices in the spot market. Nevertheless, although the steel mill's ex-factory price is decreasing and there is still a phenomenon of "upside-down" with the sales price, the willingness of the merchants to "bid" and stabilize the market has increased. To a certain extent, it also curbs the decline of the market prices of cold and hot rolled steel sheets in the later period.