In recent weeks, there have been various positive developments in the domestic macroeconomic policies that are aimed at strengthening the overall economy. These policies include interest rate cuts and favorable measures related to the real estate sector. As a result, the real estate market has started to revitalize and the demand for construction steel is expected to pick up, especially with the traditional peak season of consumption in September approaching.
Furthermore, efforts have been made to stabilize growth in key industries such as machinery and automobile, which further boosts the resilience of steel consumption. These plans aim to support the overall demand for steel products in the market. However, it is important to note that while the demand is expected to recover, the supply of steel products still remains at a relatively high level.
From a cost perspective, the performance of the steel industry is divided. The price of iron ore has shown relative strength, indicating potential upward pressure on steel prices. On the other hand, the price of scrap steel has remained stable, providing some stability to the overall cost structure. Additionally, the price of coke, a key ingredient in steel production, has observed a slight drop.
Despite these factors, the price of steel products has been relatively stable for three consecutive weeks. This stability can be attributed to the combined effect of favorable macroeconomic policies driving and supporting market transactions. Nevertheless, it is important to recognize that the implementation and impact of these policies will take time to materialize and feed back into the steel industry.
Considering all these factors, steel prices have been fluctuating within a certain range in the short term. The market is influenced by both positive and negative trends, including the impact of macro policies and the performance of key cost factors. While the current stability in steel prices is encouraging, it remains to be seen how the market will respond in the coming weeks as the implementation of macro policies progresses.
In conclusion, recent developments in domestic macroeconomic policies, such as interest rate cuts and measures to revitalize the real estate sector, are expected to drive the demand for construction steel. Efforts to stabilize growth in machinery and automobile industries are also contributing to the resilience of steel consumption. However, the supply of steel products remains high, and the cost side of the industry is experiencing mixed performance. Despite these challenges, a relatively stable price range has been observed in the steel market, thanks to favorable macro policies. The impact of these policies will take time to fully materialize, and the market will continue to fluctuate in the short term.
Post time: Sep-05-2023