The futures steel suddenly fell, is the steel market going to accelerate?

From the point of view of the spot market, the performance on September 20 deviates from that on September 19. The main reason is that, on the one hand, the market’s worries about real estate default rumors have increased, and the macro bearish direction has not reversed; This is also the consequence of the recovery of the output of steel mills since August. Under the low demand, the sales pressure has begun to increase, and even some steel mills have already increased their agreement volume to 150% due to insufficient pre-orders. However, entering September, both production and inventory increased, which is a bad signal. After all, major traders are giving feedback, and it is rare to see such poor market confidence.
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Although the market transaction situation has improved recently and the seasonal demand has seen a mild improvement, it is still lower than the same period of previous years. The supply side continues to increase, and the output of crude steel has achieved a “positive” year-on-year. Therefore, at present, the market is in a state where supply is stronger than demand; however, it cannot be ruled out that stocking up before the Golden Week holiday on October 1st, the market may appear to be in a state of “stronger supply and demand” for a short time. However, due to weak market confidence, it is still difficult to achieve a situation of strong demand when economic operation is still under pressure, exports are declining and external demand is weak.
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On the whole, the price shows signs of weakening and falling, but the magnitude is limited. There is no serious intensification of contradictions in the market, and it continues to accumulate chips. Spot shocks are weak, and local declines slightly.
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