Market confidence continues to recover, and short-term steel prices are expected to rise steadily
Recently, steel prices have fluctuated at a low level, and the core contradiction in steel market transactions is whether demand expectations can be fulfilled. Today we will talk about the demand side of the steel market.
First, the reality of demand is a marginal improvement. Recently, Chinese real estate companies and car companies have intensively announced their sales performance in August. The pressure on the property market is still high, but it has improved compared with the data before the year; the data of car companies has continued to grow, and the manufacturing industry represented by car companies has become a Important driver of steel demand.
Second, the future of demand may be neither sad nor happy. Since steel in the property market occupies half of the steel market, in the context of a weak property market, even if infrastructure and manufacturing work together, it is difficult for the steel market to see a substantial increase in demand, and there may be no good news for “golden nine and silver ten”; but there is no need to overly pessimistic. At present, it is a critical moment for the central and local governments to work together to save the market, and the improvement in demand is expected.
Finally, the future of the steel market must be based on stability. The current demand is lower than expected. Judging from the survey, steel companies are also paying more attention to the market and controlling the production rhythm to adapt to the changes in market demand under the new situation and maintain the stable operation of the market.
Therefore, it may be difficult for the demand side to break out in the future, and the supply side will become more rational, and the operation of the market is more likely to be generally stable, which is also beneficial to all market participants.
Post time: Sep-07-2022