Black Futures Have Risen Sharply, And The Room for Steel Prices To Rise May Be Limited

On December 1, the domestic steel market mainly rose, and the ex-factory price of Tangshan billet remained stable at 4,290 yuan/ton. In terms of transactions, the market has a general trading atmosphere, just need to purchase on-demand, and there is little speculative demand.

On the 1st, the closing price of snail 4306 rose 3.98%, DIF and DEA both went up, and the RSI three-line indicator was at 46-70, running between the middle and upper tracks of the Bollinger Band.

On the 1st, three steel mills raised the ex-factory price of construction steel by RMB 20-30/ton. Among them, Shagang’s ex-factory price of building materials was stable in early December.

It is expected that steel mills have plans to resume production in December, leading to the recent rebound in raw and fuel prices. The increase in costs and the demand in the southern region are still acceptable, and steel prices will strengthen again in the short term. However, with the deepening of winter, steel demand is expected to weaken overall, downstream terminals tend to lower spot inventories, and merchants are also willing to lower winter storage costs, which will restrict the room for steel prices to rebound.