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Chinese steel prices rise

 Chinese steel prices rise

This week, the domestic construction steel showed a trend of first decline and then rise: dragged down by the seasonal decline in demand, the price of construction steel in most areas adjusted at the beginning of the week, and then boosted by the collective rebound of black futures, the market optimism was released, and the price of raw materials continued to increase. Production costs have risen sharply, and manufacturers have joined hands to push up market prices. The growth rates of different regions are significantly different. Domestic construction steel prices have risen in the off-season, due to both fundamental factors and capital speculation, and the decisive role of demand has been weakened to a certain extent. With the strong recovery of the domestic economy, the overseas economy is gradually improving, and the sales of steel products are obviously better than expected. The price increase of other steel products has formed a support for the price of construction steel. In addition, under the environmental protection and production restriction policy, the pressure on the supply side has declined, and the pattern of weak supply and demand in the spot market will continue. Domestic building materials inventory continued to decline this week, but the decline narrowed month-on-month. For the later market trends, the market still has expectations: on the one hand, raw materials are operating at a high level, cost support is obvious, manufacturers are difficult to change their strength; on the other hand, demand remains resilient, funding has not yet tightened, and speculation has not cooled down.

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