The rebound in steel production has led to an increase in raw material purchases, which has also pushed up raw material prices.
It is expected that in February, the Spring Festival and the Winter Olympics will have a greater impact, and the whole month may show a trend of first decline and then increase. The opening of the Winter Olympics is imminent, and the pressure of environmental protection and production restrictions of northern steel mills is increasing. In addition to the Spring Festival factor, the production of steel mills may decline significantly in the first half of the month, but with the end of the Spring Festival holiday, production may resume in the second half of the month. Production is expected to decline.
The demand side is the same as the production side, which is greatly affected by festival factors in the first half of the year. However, with the end of the Spring Festival holiday and the passing of the peak period of widespread rain and snow, infrastructure real estate will gradually resume work. With the slowdown in policy and credit, the overall real estate market may pick up slightly, and it will still focus on stability at the beginning of the year, which will bring certain support to downstream demand.
Steel prices may rebound slightly. On the one hand, after the end of the Spring Festival holiday, the current stable growth policy has prompted the demand side to pick up; on the other hand, due to the high cost of raw materials before the festival, winter steel has a certain supporting effect on the future steel price.
