The cost is weak, and the steel market shocks stronger

Due to the impact of geopolitical risks, global industrial chain, supply chain structure, inflation and debt problems, the impact of multiple negative factors such as energy and food crisis, the global economic downside risks have increased, the degree of differentiation has increased, and global manufacturing demand is weak. Essence At present, the main contradiction in the Chinese economy is still insufficient total demand. In order to stabilize growth and employment, the stable monetary policy has been strengthened in time.
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In terms of total, the People’s Bank of China will implement 25 basis points on December 5 to guide market interest rates to decline. For the domestic steel market, the comprehensive reduction and relevant policies for the real estate industry will have a certain role in boosting the confidence and expectations of the domestic steel market.
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From the perspective of the supply side, due to the strong strength of raw materials, the profit margin of the steel mill is compressed, which limits the production capacity of the steel mill, and the short -term supply side will show the trend of pressure adjustment. From the perspective of demand, the demand for work gradually enters the end, and the rebound of the steel club also shows the gradual emergence of the off -season demand effect.
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From the perspective of cost, due to the significantly strong price of raw materials in the near future, the short -term cost support is strong, and the price of steel mills is more obvious. In the short term, the domestic steel market will face the continuous enhancement of market expectations, short -term supply pressure adjustment, demand for off -season effects, and a significant situation of cost support. The domestic steel market will show a strong market for the domestic steel market this week (2022.12.5-12.9).