Market Mentality Slightly Warmed, Steel Prices May Fluctuate Strongly Next Week

The spot market price fluctuated within a narrow range this week. Affected by the disk rebound, the spot market rebounded slightly in the second half of the week, and low inventories supported prices. However, the current market demand is still poor, and price increases are under pressure.

On the whole, the domestic steel market prices showed a slight consolidation trend this week. The futures market fluctuated upwards, the overall market mentality has slightly warmed up, and the price of raw materials has stopped falling and stabilized, which has a certain supporting effect on spot prices. Although it is in the off-season, the supply of steel mills is low, terminal enterprises still have a small purchase demand, and the market inventory continues to deplete. Over the weekend, Premier Li Keqiang said that he will continue to implement a prudent monetary policy, maintain reasonable and sufficient liquidity, reduce the RRR in due course, and increase support for the real economy, especially small, medium and micro enterprises. The news will boost the market next week. It is generally estimated that the domestic steel market prices may fluctuate strongly next week.