According to statistics, in November, the PMI (Purchasing Managers Index) of the steel industry was 40.1%, a decrease of 4.2 percentage points from the previous month, and a decline from the previous month for two consecutive months. Among them, the new order index was 34.5%, down 8.9 percentage points from the previous month. This shows that steel demand has shown a contraction trend.

Entering December, as the demand “cools down” seasonally, the steel market must be prepared to “warm up”. In the later period, as the off-season effect continues to ferment, the speed of demand contraction may further accelerate, and the weak characteristics will become more obvious.

Under such circumstances, the game between the strong expectations driven by favorable policies and the weak reality of declining demand will further intensify. Before the market finds a new equilibrium point, there is little room for steel prices to continue to rise. At the same time, due to the restart of coke price hikes, iron ore prices are still strong, and steel cost support is still strong, which will also lead to limited room for steel prices to fall. On the whole, the price trend of steel products in the short term will be dominated by high volatility.