Steel prices remain high, steel traders are not enthusiastic about “winter storage”
Since the beginning of winter, “winter storage” has become the hottest word in the steel industry. How to “winter storage”, when to “winter storage”, and even whether to “winter storage” has become a difficult problem. Everyone is not only worried about the dilemma of being “unarmed” after the 2021 holiday, but also afraid of “standing guard” at a high position. For a time, “Winter Reserve” fell into a dilemma.
In fact, starting from December 2021, some steel mills have taken the lead in introducing the “winter reserve” policy, but they are basically based on conventional policies and are not particularly attractive. Recently, in order to stimulate the enthusiasm of the market for “winter storage”, some steel mills have launched a “flexible” policy full of sincerity. For example, on January 4, 2022, Meijin Iron and Steel Co., Ltd. issued the “winter reserve” policy of “not rising when it rises, and falling when it falls”, and will continue the preservation time until May 15, 2022.
(To learn more about the impact of specific steel products, such as galvanized coil, galvanized sheet, galvanized corrugated sheet, etc., you can always contact us)

demand side
In 2021, the new real estate construction rate will drop sharply. Even in the peak construction season of “Golden Nine Silver Ten”, steel demand is still very weak. Although the country has adjusted its fiscal and monetary policies at the end of 2021, the fiscal policy will be more active in the later period, and the monetary policy will be relatively loose, but it is still difficult to determine when the specific policy will be reflected in steel demand. Therefore, whether the demand for steel can recover quickly in the first quarter is still a matter of concern to everyone.

Yield
There may be a rapid recovery after a few years. In 2021, under the influence of the policy of reducing steel production, many places across the country have successively introduced production restriction policies, especially in the second half of the year. After entering 2022, except for Hebei, Shandong, Shanxi, and Henan in the 2+26 region, which have production curb requirements, there are basically no restrictions on relevant policies in other regions. At the same time, with the decline of raw and fuel prices, the profits of steel mills have increased significantly, and the profits of some steel mills have exceeded 500 yuan / ton, which will greatly stimulate the production willingness of steel mills. With the rapid recovery of production, it will have an impact on the state of supply and demand in the market.
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In the current state that the steel price does not continue to adjust downwards, it is more cautious if winter storage is carried out in the form of price lock; if the steel price drops by 200 to 300 yuan, or even more, it is recommended to lock the price before the festival. In the form of a certain amount of “winter storage”.
(If you want to get the price of specific steel products, such as galvanized coil, galvanized sheet, galvanized corrugated sheet, etc., you can contact us for quotation at any time)