There Is Panic in The Steel Market, Will The Sharp Decline Continue?

Today, the steel market has made up for the decline, and the decline has increased. In terms of varieties, varieties such as threads and hot dipped steel coils have generally fallen by 30-70 yuan, and strips, profiles, cold-rolled steel sheet and other varieties have also accelerated their decline. At the same time that the fourth round of coke increases and decreases started, scrap steel prices also showed a downward trend. In some areas, the price dropped by more than 100 yuan. The cost of steel products continued to decline. Overall, market transactions were poor, panic intensified, and falling prices increased buying. Everyone has a wait-and-see attitude, and the amount of speculative replenishment is not large.

(If you want to know more about the impact of specific steel products, such as silicon metal prices, you can contact us at any time.) Judging from the price changes in the past two days, the atmosphere of market panic has obviously increased, and the new low prices in the market continue to impact people's psychological defense lines. Concerns about the market are growing amid the suppression of short positions in the futures market and the behavior of short selling at low prices in the futures market.

(If you want to know more industry news about silicon steel plates, you can contact us at any time)
At the moment, the market is placing its hopes on steel mills to reduce production, but the published production data has not changed much. Even if steel mills speed up their production cuts, the impact of the production cuts will take time. Under the influence of a panic market, any negative impact may be amplified, thus suppressing market confidence and increasing selling behavior, which is not conducive to market stability. Even if prices fall, it will not help transactions and affect the release of demand. When the price goes up, it's always out of stock. After the price fell, there were a lot of goods in factory warehouses, and even the goods stored in winter have not been sold out. From this perspective, the ups and downs of the market, good and bad, and the performance of market resources are also different. Currently, the market needs stable sentiment and confidence.

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From the perspective of demand, the steel trade still faces poor construction site arrears. Insufficient funds affect the start of construction sites. Black demand for cement has declined in stages, and transactions in the steel market have been poor. At present, the spot market has made up for a lot of losses over the weekend, the basis has narrowed, steel mills have generally increased their losses, and merchants are afraid to place orders. Since the market is declining rapidly, you need to be cautious about closing short positions. Big drops in the market won't last long, but you need to be patient and wait for the bottom to hit.