“Strong expectations” return to “weak reality”, how much will steel prices fall?

Today, the overall steel market fell slightly. Threads are generally weaker than hot coils, generally falling by 10-30 yuan, most of the hot coils are stable, and a few markets drop slightly. The prices of other varieties dropped steadily, and those of medium plate, cold-rolled, galvanized, and strip steel all dropped, but the range was not high. From the perspective of transactions, the transactions have improved after entering the Lantern Festival, and the quantity of just-needed goods is also increasing, but the overall situation is still weak and has not returned to the normal pace of demand procurement.
(To learn more about the impact of specific steel products, such as Z Type Steel Sheet Piles, you can feel free to contact us)
The core logic of market changes is still the short-term changes brought about by the transition from strong expectations to weak reality. Today’s steel market is still going through a callback rhythm, but there are some differences in market performance compared with yesterday. First of all, coking coal and coke futures rebounded, which played a supporting role in the iron ore and other varieties that had fallen below the level. Looking back on this round of callbacks, the pressure first started to fall from the higher-profit coking coal, and today coking coal and coke have realized the rhythm of falling first and then rebounding. Secondly, the spot sentiment is still not high, and it did not actively rise with the market in the afternoon, reflecting the generally cautious attitude of the spot market.
(If you want to know more about the industry news on Steel Sheet Pile Manufacturer, you can contact us at any time)
At present, most steel mills are losing money, which has caused the current steel price to be released with risks, and the power to continue to fall under the loss is not strong. Especially the price below the winter storage cost of steel mills and the cost of blast furnace, the expected high valuation has been squeezed out, and a further decline is a realistic contradiction. In addition, the enthusiasm of steel mills to resume production will be affected, and the price will operate in a state where both supply and demand are difficult to exceed expectations, and it will take time to give chips.
(If you want to get the price of specific steel products, such as Cold Formed Sheet Pile, you can contact us for quotation at any time)
From the current point of view, the decline in the steel market has slowed down significantly this week. Although a new low price has appeared after some years, judging from the disk, every time it falls, it can rebound quickly, which shows that the decline has reached a stage of increasing resistance. From the perspective of spot goods, we are also constantly testing in the state of recovery of transaction and procurement demand, and it is not that the lower the price, the more favorable it is. Market costs, market protection behavior and the psychology of rising all make it more difficult for the market to continue to fall. Although it is still possible to go lower, the space below will not be too large. If the disk continues to rebound, it will mainly return to the state of oscillating operation.