Steel prices hard to find "February Red"

The steel market has had a "good start" over the years. This year, the market has entered into February and businesses have begun to return to the market. After the holiday, the market prices of various types of steel products have been slightly increased, but mainly to cater to the idea that merchants will make good signs in the coming year, and there has been no obvious improvement in market demand for terminals.

Treasure Island Steel analyst Huang Meihua said that in terms of demand, due to the recent cold weather in the north, the current downstream site, factory start time has been affected, and downstream procurement is still relatively less active. In terms of inventory, as many businesses abandon the Dongkue years ago, some of the intermediate demand began to be released on the two days, but the overall shipment situation is generally in the performance, and inventory is in a situation of passive increase.

On the macro level, Huang Meihua said that currently European countries are in cold winters and heavy snowfalls, and spot demand for steel products is difficult to start for a while. This will inevitably affect the export of domestic steel products, which means that exports to Europe in the first quarter will be postponed. In January, the domestic PMI index of HSBC and China's official manufacturing industry rose slightly to 48.8% and 50.5%, respectively, since the three-month highs, indicating that China's economy has gradually stabilized and the overall moderately loose monetary easing policy will remain.

In Huang Meihua's view, the current market is overbearing, and there has been no substantial change in the direction of domestic real estate, capital, and other policy aspects. It is expected that the market in the first quarter will not have a good market. Considering that many steel mills are cutting production and repairs, the market needs to create a new balance point. In the short term, the steel market will find it difficult to find the "Red February" market.