Recently especially after entering November, the weathering steel prices has fallen sharply, and the market panic has intensified.
It is generally believed that the terminal demand of weathering steel is not good, the stock of steel mills keeps accumulating, and the output is always at a high level. It is predicted that the market weathering steel prices will be in a period of weak fluctuation in the short term. Due to the recent downturn in weathering steel prices, the market mentality has changed. Some voices believe that the inflection point of the weathering steel market, which has been rising for three years, is coming.
Professionals analysis that this month's accelerated decline in weathering steel prices is mainly due to three factors, one is the limited release of market demand. Second, the market supply continues to rise. Influenced by the high weathering steel prices, the large profit margin and the anticipation of staggered peak production, the output of crude steel in China has remained above 80 million tons in the past six months. In October, the output of crude steel in China reached 82.55 million tons, an increase of 9.1% compared with the same period last year. The output of crude steel has reached an all-time high. Third, the subtle change of market mentality. Due to the adjustment of the policy of environmental protection and production restriction in autumn and winter in Beijing-Tianjin-Hebei region this year, the expectation of late market supply is loose, which is in marked contrast to last year's "one-size-fits-all" policy. Overlapping the market climate of heightened fear and the market law of "buy-up-not-buy-down", the development of the iron and steel industry has changed steadily.
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