Steel prices are at the lowest level in the same period in the past two years, why do you still think it is too high?
The Lunar New Year is less than a month away, and the “Winter Reserve” has already started in previous years, but this year everyone seems to be less enthusiastic. When it comes to why the “winter storage” has not been opened for a long time, the reason people say most is that the price is too high and has not reached the psychological price. Is the current steel price really high?
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Since November, the steel market has started a wave of rising tide, and both rebar futures and spot prices have risen significantly. But it is worth noting that even though steel prices have risen more recently, the prices of both rebar spot and futures are still at the lowest level in the same period in the past two years.
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It can be seen from the data that the current snail and spot prices have dropped significantly compared to the same period last year and the year before. high”.
From the current point of view, it is difficult for the price of raw materials and fuels to see a sharp correction in the short term, and the steel market has gradually entered the “off-season of demand”. It is difficult for steel prices to rise sharply, so it is difficult for the overall profit of steel mills to increase significantly.
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The current “high steel price” is just a feeling of the market, because the overall market has not improved significantly this year, and traders have not made any money, so the expectations for the future are not too strong. At present, the demand side has recently entered a weak off-season state, resulting in weak short-term fundamentals, so some companies are not very enthusiastic about “winter storage”.