China's steel prices expected to rise in Oct, especially longs
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Update time : 2024-10-08 15:24:00
According to research institutions, steel prices in China surged in September. It is expected that steel prices will continue to rise in October compared to September, and building materials will perform better than sheet metal. The reasons are as follows:
Firstly, due to the efforts of monetary and fiscal policies. For example, the recent 0.5% reduction in reserve requirement ratio, the release of 1 trillion yuan of funds to the market, and the decrease in the interest rate of existing housing loans to near the interest rate of newly issued housing loans will be beneficial to the economic recovery.
Secondly, the inventory of steel has decreased, resulting in a significant supply-demand gap, with a one-third decrease in building materials inventory. In addition, with the recovery of steel mill profits, steel mills will continue to resume production, and the supply and demand of raw materials will improve.
Thirdly, long and plate products exhibited differentiation. Due to the high inventory pressure of plate products and the low inventory of longs, the price increase of longs will be greater than that of plate products.
