First, congratulations to the customers who bought the bottom and placed orders last week, and thanks to the customers who are still watching. The steel coil price fluctuates too much. Let us summarize two points and share them with you. It is quite a learning exchange.
Last week, the steel coil price was continuously lowered, and the market panic was fermenting. On Friday, some merchants locked the price after a sharp reduction. With the release of macroeconomic data, the market sentiment has been boosted. The price of ordinary carbon billet in domestic steel mills rebounded on weekends, and the price of construction steel in some markets rebounded from a low level. However, the market transaction volume did not increase, indicating that the current confidence is still weak. The Weak terminal demand is still the biggest constraint on the continued recovery of steel prices. Whether this wave of gains can continue depends on the changes in market trading volume.
Recently, coke and steel enterprises have been competing fiercely around coke prices. However, with the sharp decline in finished steel prices, coke prices have also been forced to enter a downward channel. This time, the increase in coke prices is due to the shrinking demand brought about by the reduction of production by steel companies. On the other hand, it also reflects the pessimistic attitude of steel companies and the market's on-demand expectations. In the short term, steel prices are still dragged down by the low-cost center.
