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Stainless steel absorbs the decline in short-term, and the market outlook still needs rigid demand

Issuing time:2021-03-19 15:52Author:momo

Stainless steel absorbs the decline in short-term, and the market outlook still needs rigid demand.

斜边格子 六宫格02 machining.jpg

Around the Spring Festival, the heart of stainless steel industry is greatly stimulated. While the market is comparable to a roller coaster, what is the current situation of the stainless steel market and how the market outlook will be interpreted.

After the Spring Festival,stainless steel rose and fell sharply in a short period of time, up 20.36% year-on-year.

Judging from the trend of stainless steel, the current price has not risen much compared to before the holiday, and some low-priced resources are even lower than the price before holiday. Industry players have different attitudes towards this. Some are cautious and wait-and-see, and some are active shippers. Generally speaking,the current market trading atmosphere is relatively weak. But in fact, thecurrent stainless steel is already pretty strong.

For the current stainless steel market, both cost and atmosphere support are weak. It is a big negative for the market trend in the later period, but in addition to this, the fundamentals of supply and demand and the overall environmental impact should also be considered.

Judging from the overall production situation of the current steel mills, the output from January to February increased by 34.65% year-on-year. On the one hand, this is due to the low base in 2020. On the other hand, with the continuous increase of domestic stainless steel production capacity and output, The current overall base has also climbed to a high level. However, under the influence of some steel mills' volume control, the current market supply pressure is temporarily not obvious.After the Spring Festival this year, the market saw sharp rises and falls. The overall demand did not show a significant increase in volume. As the traditional peak season for demand, just demand is an indisputable fact. In addition, just after the two sessions, under the expectation that the new and old infrastructure will work together, the demand side will generally supportor continue to be optimistic. Therefore, overall, the current fundamentals of supply and demand are still relatively favored.

From the perspective of the overall environment, the beginning of the 14th Five-Year Plan will encounter the "post-epidemic era", and the overall changes need to be tested.In addition, with the merger and reorganization of domestic stainless steel companies and the continuous extension of the industrial chain, the concentration of the stainless steel industry has further increased, and the bargaining power of manufacturers in the market is relatively strong. Under this circumstance, the change in the price side is obviously affected by the price of the enterprise. With the further downward adjustment of corporate guidance prices in this round, the market`s profit-enhancing trading atmosphere continues to rise, or to a certain extent, to promote the overall digestion ofthe source of goods, and it is possible to increase the support for the market.

Regardless of the influencing factors, it will eventually have an impact on the market mentality. At present,the industry mentality is mostly cautious in the short term. As the price dropsto a low stage, the terminal reception gradually increases, and the market will eventually find a certain degree of support. In the near term, the stainless steel market has room for a low rebound after digesting this round of decline.





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