Saturday , May 28 2022

Lusteel's production limit continues to fall, demand is not as good as expected, Q1 price of China Steel is under pressure |


Sinosteel is about to open its first quarter of next year's price, with the company expecting to expand its production and winter offer in Mainland China, and the first quarter of next year will support the price. The kinetic energy of domestic demand has slowed, and the impact on Sinosteel's price is also worthy of attention.

According to Sinosteel's forecast, China's winter production limit will be extended and time will be prolonged. In addition, in response to the impact of the US-China trade war, the government will consolidate domestic demand and boost economic development.

However, the December price of the three major steel factories, such as Baosteel, Wuhan Iron and Steel, Iron and Steel in Anshan, etc., fell over 100-200 yuan per tonne. The market is generally considered the main reason for slowing the pace of the domestic market and household appliances. As a result, steel prices weakened and also exerted pressure on the forthcoming price of the first quarter of Sinosteel next year.

In addition, production restrictions this year have altered the implementation method, which is also considered one of the reasons for the lower steel prices. Although the continent has expanded its production area this year and extended the time to 6 months, this year, depending on the situation of environmental producers, production has been reduced and shortages of short-term supply are no longer I'm seeing.

According to Sinosteel's domestic estimate, steel prices will continue to rise in the first quarter of next year and steel prices will continue to decline in the first quarter of next year. Together with the impact of the trade war, China Steel will focus on the first quarter of next year.

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