Steel Coil Price Analysis For December

1. International developments: The Federal Reserve lowered interest rates by 25 basis points as expected, and further rate cuts are anticipated next year; domestic meetings concluded, with the overall focus on improving quality and efficiency, leveraging the integrated effects of existing and new policies, and increasing counter-cyclical and cross-cyclical adjustments.
2. Domestic market: This week, pig iron production decreased by 31,000 tons to 2.292 million tons, continuing its downward trend, reducing supply pressure; production of the five major steel products decreased by 227,300 tons to 8.0622 million tons, also continuing its downward trend, but supply pressure remains. Galvanized steel coil prices fluctuated by approximately $3 this week.
3. Demand side: Total inventory of the five major steel products decreased by 335,000 tons to 13.3209 million tons, and apparent demand decreased by 244,500 tons to 8.3972 million tons, indicating a continued decline in both supply and demand.
4. Raw materials: The support from raw materials is gradually becoming apparent. The decrease in pig iron production is putting pressure on iron ore demand, and there is significant upward pressure on futures prices; however, the rate of price reduction in coal and coke spot markets has slowed, and coupled with a rebound after hitting a low point in futures prices, the raw material support structure has improved.