Steel prices rise due to favorable New Deal

According to forecasts by internal agencies, steel prices may rise by several hundred yuan per ton next year, reaching 4,000 yuan. This can also be regarded as the most optimistic forecast for the future steel price. Coupled with the recent upward trend in steel prices, many steel traders who had previously abandoned the winter reserve and lost confidence in the market rekindled their enthusiasm.

Every year at the end of the year, steel traders will pay close attention to this year's closing battle, and they will invariably look to the next year. For next year's market conditions, industry analysts said that steel prices will show an upward trend in the first half of next year and are expected to be around 300 yuan per ton higher than the current price, which should exceed 4,000 yuan.

Li Wenjie, general manager of Shougang Xinhualian Electronics Co., Ltd., pointed out more optimistically: “I think that next year will be much better than this year. The steel price in April and May next year is expected to reach RMB 4200-4300/ton.” The industry is increasingly optimistic about the market prospects. , also let the steel traders once lost in confusion before the Spring Festival eat a certainty pill.

It is understood that from November to next March, all belong to the off-season of the construction steel market. The cold weather in the north in winter has led to a decrease in construction site construction and steel sales. Steel traders will pick up low-priced goods and look forward to returning to work after the spring to resume steel prices. Prior to this, many steel traders expressed concern that the winter storage would not be considered due to concerns that the steel market will remain sluggish next year.

However, near the end of the year, the favorable policies for the steel industry continued to make steel prices show signs of recovery. Yang Jianlong, vice minister of the Ministry of Industry under the Development Research Center of the State Council, also pointed out that in 2013, under the trend of steady economic growth in China, investment in real estate, automobiles, infrastructure, and electricity will all increase. At the same time, the export situation will also improve, and the new orders index, new export orders index, and purchase volume index will continue to rise, reflecting that the company's destocking activities have basically ended. In view of this, the iron and steel industry has basically achieved a process of bottoming out and is expected to gradually recover in 2013.

Seeing the steel industry stepping out of extreme cold winters, steel traders are not willing to blindly reduce inventory and miss opportunities. Senior steel trader of Linyi Wanshun Steel Co., Ltd., a secondary steel trader, publicly stated that it had been purchased and used as before, but recently steel traders are rushing to grab goods and inventory has been increasing. Linyi Wanshun’s inventory growth in recent days has also been relatively rapid, increasing by approximately 30% from the first half of the year. On the other hand, steel traders have started to increase the number of purchases and further boosted steel prices.