In the past 2 month,Chinese steel price kept going down ,and it came to an end temporarily by the end of November.A total of 13 commodities in the rise and fall list of commodity prices in November 2019 saw a month-on-month rise in the steel sector, of which 3 rose more than 5%, accounting for 15.8% of the monitored commodities.
China Steel price trend
Chinese Steel Price Information：
A total of 13 commodities in the rise and fall list of Chinese steel prices in November 2019 . There is 3 rose more than 5%, accounting for 15.8% of the monitored commodities. The top 3 commodities are re-bar (10.15%), wire (6.32%) and hot rolled coil (5.57%). There were 6 kinds of commodities that declined on a month-on-month basis, 2 kinds of commodities that dropped more than 5%, accounting for 10.5% of the monitored commodities in this sector. The decline of the top 3 products are manganese silicon (-6.53%), stainless steel (-6.22%), stainless steel plate (-3.36%). Both rose or fell 0.9 per cent this month.
The Chinese Steel price of steel hot rolled plate
Domestic plate rolling prices rose slightly in November. Common middle board (material: Q235B; Specification: 20) the price at the beginning of the month is 3642 RMB/TON, and the price at the end of the month is 3673 RMB/TON, it is increased about 0.85% from the beginning of Nov.2019 .
The reason of Chinese Steel Price in rising on Nov. 2019
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Favorable policies and loose capital lead to Cinese steel price in rised on Nov. 2019 .
Stable investment and shortcomings have begun to accelerate in the end of year, especially in terms of cracking down on funding sources. Chinese steel price goes up as the stable investment being increased . Recently, a number of heavy new policies have been implemented: 2020. New special debt quotas have been released in advance of 1 trillion RMB, fixed asset investment projects, and new capital management regulations have also been officially issued.
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Demand exceeds expectations, “supply and demand mismatch”
In November, the domestic steel market demand exceeded expectations,and it is one of the price of Chinese steel price goes up . In the warm winter environment, the downstream operating rate remains high, and the demand for construction materials continues to rise. Also shipments have increased from the same period of previous years. On the other hand, traders are expected to be cautious at one time, and “de-stocking” efforts are too large. And social inventory continues under decline, while the leading steel mills have controlled the pace of delivery. The process of “going north to the south” has been unsuccessful, resulting in a significant supply-side gap. Boosted by favorable real estate data, black futures rebounded strongly, eventually triggering a deeper market
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Forecast
In November, the domestic construction steel market ushered in a rebound. The fundamental reason is that the initial market was collectively bearish, social stocks were at a low level, and demand was released more than expected, eventually forming a higher price under the mismatch between supply and demand.as thedemand increase ,and the market supply can not follow with the demand’s increase, Chinese steel price going up in short time . At present, the market prices in many places have reached annual highs. As the contradiction between supply and demand has eased, there has been resistance to rising prices.
