It is expected that the short-term steel price may rise steadily
Today’s steel futures fluctuated at a high level and within a narrow range, the spot transactions were average, and the steel market remained flat. Today, let’s talk about the future steel price trend from the raw material side.
First of all, the recent trend of iron ore prices is on the strong side. Affected by the improvement of international freight and the stocking of steel mills, the supply and demand of iron ore have recently increased, and the prices of imported iron ore and domestic iron ore have both rebounded. The pace of resumption of production may slow down, which is conducive to stabilizing market supply.
Second, raw material prices may continue to trend strongly. With the expected improvement in demand, blast furnaces continue to resume production as planned, and the demand for raw materials such as iron ore will be difficult to reduce in the short term, and under the circumstance that the market supply is difficult to increase significantly, its price will likely be adjusted strongly.
Finally, the strong price of raw materials has certain support for the price trend of steel. Cost is one of the important factors affecting steel prices. The price trend of raw materials directly determines the changes in steel costs, and even affects the production organization adjustment of steel enterprises. At present, the profit margin of steel companies is not large, and the rise in raw material prices may become a sensitive factor for steel companies to support prices.
In short, from the perspective of raw materials, the bottom support of steel prices is strong, and short-term steel prices are easy to rise and hard to fall.
Futures steel closed up:
Today’s main thread rose 1.01%; hot coil rose 1.18%; coke rose 3.33%; coking coal rose 4.96%; iron ore rose 1.96%.
Steel price forecast
On the first working day after the holiday, the market transaction was normal after the steel price rose slightly. Recently, demand has been steadily increasing, the contradiction between supply and demand in the market has eased, the market outlook is expected to improve, and the willingness of merchants to support prices has increased. It is expected that short-term steel prices may rise steadily.
Post time: Sep-14-2022