The steel market staged a “warm winter” market in November, which was the result of multiple effects from the macro, capital, and fundamental aspects.
On the one hand, the real estate “rescue market” policy aimed at “guaranteeing the delivery of buildings” and the “warm wind” of various policies to stabilize growth have been blowing frequently, superimposed on the continuous optimization and adjustment of the prevention and control policies of the new crown pneumonia epidemic, and the market sentiment has been restored under the stimulus of macroeconomic benefits. The futures market took the lead in pulling up and driving the spot market to rise accordingly.
On the other hand, in the context of resilient demand, the contradiction between supply and demand in the market has not been intensified due to the off-season effect of demand. On the contrary, driven by the downstream rush period, the increase in terminal replenishment purchases has provided impetus for the rebound of steel prices.