After entering December 2021, the price of steel has always maintained a trend of slight fluctuations, with the highest rise and fall of only more than 100 yuan. With the approaching of the Lunar New Year in the Year of the Tiger, the steel market is in the off-season of demand, but the steel price is still higher than the psychological price of winter storage. safety line”?
At present, the steel market is in the “three lows” state of low demand, low output and low inventory. (To learn more about the impact of specific steel products, such as az150 galvalume steel coil, you can feel free to contact us)

demand side
Since last year, the country has gradually tightened fiscal and monetary policies, resulting in a significant decline in real estate investment and infrastructure investment. Therefore, even in the peak season in the second half of the year, demand is still weak. Although the country has adjusted its fiscal and monetary policies at the end of 2021, and will tend to be looser in the later period, it will not be able to quench the thirst in the near future, and it will be difficult to play a substantial role in the demand for the steel market before the holiday.

At the same time, with the approach of the Lunar New Year and the further drop in temperature, outdoor construction projects have been suspended one after another, and the demand for construction steel will continue to decline. According to the non-manufacturing business activity index released by the China Federation of Logistics and Purchasing and the Service Industry Survey Center of the National Bureau of Statistics, in December 2021, the business activity index of the construction industry was 56.3%, a decrease of 2.8 percentage points from the previous month. The off-season has gradually arrived.

Inventory
Under the continued weakening of demand, social inventory should have rebounded, but the current social inventory of steel is still in a downward trend; and there has been a “twelve consecutive decline”, but the decline has gradually slowed down. According to the monitoring data of Lange Steel Cloud Business Platform, on December 31, 2021, the social inventory of 29 key cities counted by Lange Steel Network was 8.48 million tons, a decrease of 27,000 tons or 0.32% compared with the previous week. The rate of decline in the previous week slowed down by 2.18 percentage points; the “twelve consecutive declines” decreased by 3.467 million tons, or 29%. (If you want to know more about the impact of the production restriction policy on G550 az150 aluzinc galvalume, you can contact us at any time)

Yield
The continued decline of the social pool under low demand is not unrelated to the sharp reduction in production in the second half of 2021. In 2021, under the request of the state to reduce steel production, many places across the country have successively issued production restriction policies; especially since the second half of the year, the production restriction policy has become increasingly strict, and the overall crude steel production has declined significantly. According to data from the National Bureau of Statistics, from January to November 2021, the domestic crude steel output was 946 million tons, a year-on-year decrease of 2.6%, and the reduction in crude steel output has exceeded 20 million tons.

Recently, Shanxi, Shandong, Hebei and other places have once again issued notices of heavy pollution remediation, superimposed on the phased production restrictions that are approaching the Winter Olympics, resulting in steel mills’ resumption of production is not as strong as expected. According to the survey of Lange Steel Network, the average blast furnace operating rate of major iron and steel enterprises in China in December was 71.24%, which was the lowest level in the same period in the past three years.

In addition, although there has been a relatively obvious rebound in the price of raw materials and fuels recently, the impact on costs is relatively limited. From the current point of view, the overall steel market still presents a pattern of weak supply and demand. The cost support for steel prices is not too strong, and the demand will become the core contradiction in the later period. Now the market sentiment is still relatively strong, so before the Spring Festival, the steel market may Showing a weak and volatile trend. (If you want to get the price of specific steel products, such as galvalume steel coil, you can contact us for quotation at any time)