Sudden “rate cut”! Futures steel rebounded in a straight line! Steel prices start to rise?

After two months, the central bank suddenly adjusted the policy interest rate, but the pressure on the spot supply of steel products was too great, and the demand was sluggish. The business sentiment was boosted by the pull of futures, and some markets rose.
In order to promote economic vitality, the central bank lowered the medium-term lending rate, reduced the cost of capital, reduced the financial pressure of enterprises, and drove investment to increase the demand for steel, which is good for the price trend of steel products.
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It can be seen from the data of the Bureau of Statistics that the output and supply of steel products increased month-on-month in the first ten days of August, while the smooth control policies of various provinces rumored in the market have not yet been implemented, and the pressure on supply has not diminished. However, in the off-season of traditional steel consumption, investment in real estate, manufacturing, and infrastructure development is lower than expected, the demand for steel continues to decline, and the pressure on supply and demand fundamentals increases, which is negative for steel prices.
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With the implementation of macro policies, many leading real estate companies have financial problems, and the decline in investment in real estate development continues to increase. Due to the impact of weather, the progress of terminal projects is limited, the demand for steel is sluggish, and the supply of steel remains high. Continuous accumulation, the basic contradiction between supply and demand emerges one after another, the speculative demand of merchants weakens, and the sentiment of replenishing inventory is not good, which is negative for the price trend of steel products.
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Due to the lower-than-expected macroeconomic data and the lower-than-expected data released by the National Bureau of Statistics, it is difficult to make a big change in the steel demand side. The contradiction between supply and demand in the industry has accumulated. The market is intertwined with long and short, and the market has repeatedly fluctuated. The news of some steel mills’ flat control and production restriction has once again spread, which has driven the market’s bottom-hunting sentiment, and some merchants have begun to replenish their warehouses. It is expected that tomorrow’s steel prices may rise steadily, with a range of 10-30 yuan/ton.