Analysis of two factors influencing galvanized steel coil prices this week:
1. Macroeconomically, the US government shutdown has intensified, fueling risk aversion. While the relatively loose monetary policy hasn't led to risks stemming from a weak economy, the tariff issue has once again rattled sentiment, negatively impacting sentiment. The National Development and Reform Commission issued an announcement on curbing disorderly price competition and maintaining a healthy market price order. Policy expectations are focused on the Fourth Plenary Session of the 19th Central Committee of the Communist Party of China, with the focus on stabilizing growth and combating internal competition, providing support for the steel market. This week, galvanized steel coil prices fluctuated between 20 and 40 RMB. If you have a demand, please contact us.
2. Supply-side: Hot metal production fell by 2,700 tons to 2.4154 million tons, while production of the five major steel products fell by 37,600 tons to 8.6331 million tons. Despite the decline, hot metal remains at a high level, providing some support for iron ore. The decline in production of the five major steel products and the resulting supply reduction are positive for steel prices, but overall, high-speed rail underwater steel prices remain under pressure.
