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Short term steel prices are still facing adjustment

After a sharp pull-up in the early period, the price of threaded steel began to recover substantially for two consecutive weeks. It stopped falling this week and rebounded somewhat in some areas, but the range was not large. In the context of unstable trend of futures, spot prices of threaded steel also intensified the shocks. At present, the main feature of spot transactions is fear of high spirits. Once prices show a large fluctuation trend, market transactions will be affected.

In the first three quarters of this year, China's economy was generally stable and continued to maintain a reasonable range. In October, manufacturing investment rose to a higher level in recent years. The cumulative growth rate of investment in manufacturing industry has been steadily rising since March this year. First, the cumulative growth rate of investment in machinery manufacturing, general equipment manufacturing and special equipment manufacturing has increased by more than 10 percentage points compared with March. Second, investment in related industries, including iron and steel, non-ferrous and building materials, which are the focus of environmental protection policies, has increased steadily. The cumulative growth rate is also more than 6 percentage points higher than that in March. After the environmental protection requirements are significantly increased, the related investment in pollution prevention and control in these industries should be an important driving factor for the significant increase in the corresponding investment growth rate.

Recently, the air pollution in Beijing, Tianjin and Hebei is serious. Emergency plans have been launched in many places, and relevant documents have been issued to restrict the production of iron and steel enterprises. In view of the pollution process from 13 to 15, the Ministry of Ecology and Environment proposed that 25 cities in Beijing, Tianjin, Hebei, Shanxi, Shandong, Henan and Shaanxi should issue early warning, 8 cities in Hebei Province and 6 cities in Henan Province should issue orange early warning and start second-level emergency response measures, and 11 other cities should issue yellow early warning and start up. Level III emergency response measures, including Beijing at 8:00 on the 13th and Tianjin at 12:00 on the 13th.

Generally speaking, the current problem facing the steel market is the shrinking demand in winter, while the current production situation of steel enterprises is relatively stable, so the later inventory may increase, thus forming pressure on prices. At present, the price of steel is high, and the market is afraid of high sentiment. However, due to the favorable supporting factors in the market, the short-term price is still expected to recover, but the range will not be too large, referring to 50-100 yuan/ton. (source: economic reference daily)
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