Steel dealers and industry insiders predict that the steel market will rise in the near future

December 16 03:42 2020

National Day after the steel demand is strong, steel market is expected to rise in the near future.

According to steel dealers and industry insiders. Current bar, hot rolled coil. Cold rolled coil and medium – thick plate and other specific varieties of different trends.

In terms of bar materials, during National Day, the demand in Beijing-Tianjin-Hebei region was less, and after National Day, the demand began to increase. Daily turnover gradually increased, especially in 25 mm rebar demand increased significantly. October 16, The Beijing market of the  Chenggang steel production of 25 mm rebar price block for 3700 yuan/ton. Compared with October 9 up 40 yuan/ton, steel dealers and industry insiders believe that, considering the current raw fuel prices and rebar futures prices, environmental restrictions in autumn and winter tightening factors, it is expected that the overall price of Beijing construction steel market in late October will rise steadily.

Hot rolled coil, steel distribution south and industry insiders found after investigation, due to the current heavy truck demand increased substantially. Excavator. Dump trucks and other construction machinery demand increase, the current hot rolled coil market bullish sentiment. China’s heavy truck sales reached 136,000 units in September, up 63 percent year on year, data showed. Statistics from the China Construction Machinery Industry Association show that in September the 25 companies involved in the survey sold 26,034 data-mining machines, up 64.8 percent year on year. According to this forecast, the recent hot rolled coil market price will star slightly strong running situation.

In terms of cold-rolled coil plate, since National Day, the production and sales of automobile and home appliance industries in China have been flourishing. After National Day, downstream enterprises generally have replenishment demand, which promotes the increase of steel demand. Statistics from the China Association of Automobile Manufacturers show that the passenger car market reached 1.91 million units in September, with a year-on-year growth of 7.3%, maintaining a year-on-year growth rate of around 8% for three consecutive months (7.7% year-on-year in July and 8.9% year-on-year in August). The overall performance of the downstream demand is better, and the price of cold rolled products is strongly supported.

In the thick plate, National Day after the Beijing, Tianjin and Hebei region in the thick plate market price high shock, it is expected that this trend will continue in the near future.

Steel dealers and industry insiders believe that the current steel market good, bad factors interweave. On the positive side, in September, the total investment in major projects across the country increased by 96.6% month-on-month, after National Day steel turnover increased substantially, supporting the strong spot price. As downstream demand increases. Late steel prices still have room to rise. From the bearish point of view, National Day after the steel inventory growth range, destocking pressure is not reduced; Tightening policy in the real estate sector; Steel production remained high; After entering the autumn and winter, the construction in the northern region is faced with the unfavorable factors such as stagnation, which will bring back the risk of the steel price in the later period.

Media Contact
Company Name: Shandong Kunda Steel Co,.Ltd.
Email: Send Email
Phone: 19963520667
Address:2F, Contemporary International Building, Dongchangfu District
City: Liaocheng
State: Shandong
Country: China
Website: https://www.chinasteelkd.com/

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