The current price of steel should not be stored in winter
"If the price is too high, there will be little room for price increase after the year, and the risk of winter storage will be too great. It is precisely because we are optimistic about the economic expectation of 2021 that steel prices have not come down. In December 2020, the price of steel will rise by a large margin, and it is not suitable for winter storage at this price. " The person in charge told China Securities News.
Ma Guanghui of Lange Steel said that due to the low operating rate of downstream in winter and the approaching of Spring Festival, the demand for steel has been declining again and again. At present, many downstream construction sites in the north have been shut down, and workers have returned home in advance. In addition, steel shipments are also falling. In January 14, Beijing's 10 major building materials manufacturers delivered 3700 tons in total, down 5700 tons from 9400 tons at the beginning of the month, a drop of 60.64%.
Optimistic about the market in the first half of the year
Although steel traders are not willing to store in winter, the industry is generally optimistic about the overall steel market in 2021. Ge Xin of Lange Iron and Steel Research Center pointed out that at present, the domestic economy is improving as a whole, but the economic development is in the process of transformation. Optimizing the structure and transforming the power has become the main theme, which is also the basis for the long-term good development of the economy. For the domestic steel market, the market demand has decreased significantly, the downstream purchasing volume has shrunk rapidly, the enthusiasm of spot merchants for winter storage is not high, and they choose to wait and see to maintain stability. However, the futures market has rebounded after a continuous decline, which may drive the spot price to pick up, but the overall steel market still has not escaped from the weak situation. Overall, the whole steel market will show a weakening situation in the short term, and the variety trend will be differentiated.
- [Editor:Catherine Ren]