The market is slightly up this week, near the end of the year will there be a big rise next week?
Weekly market summary:
This week, the national construction steel prices shockingly weak operation, from the price changes, the overall show the south is strong north weak. The main reason is that the north is affected by the weather, demand into the regular off-season. While the southern region in the current cycle driven by the rise in the screw, demand performance is more positive. From the industrial data, the current steel mill spot profit is considerable, production enthusiasm to increase production picked up slightly. However, the plant library this week to accelerate the depletion of the social library continues to maintain the trend of depot, so the table demand data this week there was a rare rebound, pessimism has been suppressed ....
Many departments out of policy, favorable economic development, the futures market shock rise, the spot market operating sentiment is boosted, the overall transaction prices rose slightly, but into the winter downstream terminal procurement caution, merchants keep low inventory, for winter storage more in the wait and see, near the end of the year, the economic data gradually introduced, the overall macro-stimulus policies introduced, the futures market bottomed out, but the off-season terminal demand support is insufficient, transaction The level is still low, and merchants are not confident in the market, so they are slowing down their replenishment plans and are mostly cautious and wait-and-see.
From an overall perspective, the supply of rebar increased slightly this week, and the production enthusiasm of steel enterprises improved compared with the previous period. However, due to the restriction of production during the heating season, the overall supply level incremental space is relatively limited, and the tight state remains unchanged. At present, from a regional perspective, the northern region due to the impact of the weather, demand is difficult to pick up. The southern region carried the demand flag, of which the East China region terminal orders released the most positive. Next week, the southern temperature has not yet affected the construction site, part of the project at the end of the deadline phenomenon will continue. But also because near the end of the year, the focus of the downstream industry will be put on the capital recovery end, so demand or will be and this week and no major fluctuations.
Entering December, the winter storage cycle is getting closer and closer, due to the low spot cost of steel mills lead to low recognition of the current spot price merchants. In order to avoid the risk of decline brought about by high winter storage prices, the current overall business mentality is more cautious, the willingness to pull up is not high, there is resistance to the upward price movement. Overall, it is expected that next week, construction steel prices will be presented before the high after the low slightly stronger, the upside is limited.