“Preliminary energy-saving and emission reduction work has been effective. The output of major steel mills across the country has declined. At the same time, after October 27, some steel mills have begun to implement production restrictions. Later market resources will decline, market supply will decrease, and inventory will decline. Obviously, since November, the price of metal materials has shown an upward trend. “Loading, unloading, rolling, wire drawing, and the sound of one after another… I walked into the metal material trading area of Jindu Market, China Science and Technology Hardware City. , What you see is a prosperous trading scene. Mr. Li, who deals in metal materials such as round steel, square steel, and wire profiles in the market, said, “However, as usual in previous years, after the winter, Western countries begin to prepare for Christmas, and the export of hardware products will decrease. The demand for steel products will drop, and steel prices will also fall. Therefore, it is expected that the steel market will continue to fluctuate in mid-to-late December, showing a trend of first rising and then falling, but the overall trend is down from the previous month.
“Due to interest rate hikes, energy conservation and emission reduction, and the impact on real estate regulation, the recent futures and stock markets have fluctuated more frequently, and the spot market has also adjusted accordingly. However, as the’Eleventh Five-Year Plan’ is about to end and the ’12th Five-Year Plan’ The upcoming launch will surely stimulate the national economy to stabilize and rise and gradually enter a recovery state. This feels like a reassurance for us.” For the busy scene of the distribution departments in the trading area, the implementation of the steel plate for anti-theft doors in the market A certain mind is also safe. The author learned from an interview that, in fact, the majority of business operators who are optimistic about future metal material transactions like Shi are.
With the recovery of domestic and foreign economies, people’s consumption mentality has changed, but one thing that can be confirmed is that the consumption mentality of purchasers has gradually stabilized and rebounded just like the current economic development, and confidence in the market outlook has recovered and improved. “In the consumer mentality, people have the inertial thinking of’buying up and not buying down’. As commodity prices rise, concerns about inflation have come, and they have confidence in the future. When prices have risen, they dare to consume.” A single word from Shang Hu explained the consumer psychology of downstream buyers. “The increase in freight, the upward trend in the cost of imported raw materials, and the impulse to increase the price of nickel ore and coke, all these will raise the production cost of metal materials, laying the groundwork for the price increase of metal materials in the future. In addition, once the foreign economy recovers quickly , The rebound of pig iron, steel, stainless steel, copper, aluminum, zinc, nickel and other metal materials is immediately established, and prices are bound to strengthen again. At the same time, with the development of a large number of infrastructure construction in large, medium and small cities in China, the wealth effect of the capital market, Inflation expectations and other factors will support the continued steady increase in the total consumption of metal materials. In the short term, the sustained and steady expansion of domestic demand, the recovery of external demand, and the early launch of fixed asset investment projects are positive for two factors, which will inevitably maintain strong demand for metal material resources. .”
But optimism turns to optimism, and some dealers are still planning ahead. “Recent real estate regulation has a great impact on the real estate market. The’Eleventh Five-Year Plan’ is about to end, infrastructure and housing construction slows down, and downstream demand is facing shrinking. After the state has implemented secondary regulation on the real estate market, various regions have successively issued real estate regulation regulations. The housing transaction volume has again dropped sharply, and housing construction has been affected. The price of steel used in construction has also been affected.” In addition, some dealers said that the winter in the north this year came relatively earlier and the temperature was lower than in previous years. Outdoor construction in the northern region will gradually decrease, and market demand will gradually decline. Demand in the southern market is better, and resources from the north will flow into the south, and there will be differences between the northern and southern markets. At the same time, after the Shanghai World Expo is over, construction projects that have been put on hold will begin one after another, while the Guangzhou Asian Games and the Paralympic Games will be convened, and some aspects such as freight will be restricted, and the circulation of resources to the central and southern regions will cause pressure. At the same time, the cost of storage this winter is relatively high, and businesses also have some concerns.
“From the perspective of short-term development trends, the overall foreign trade environment is still sluggish, and the world economy has not yet fundamentally improved. However, in the long term, the fundamentals affecting the strong demand for metal materials will not fundamentally change. Therefore, the future is expected In a few months, the metal material sales market will show a trend of volatility. Experience shows that a healthy and mature market will never allow a certain type of industry or a certain product to perform long-term’crazy’. The metal material market has experienced a’surge’ , After experiencing the roller coaster-like ups and downs such as the’crash’, we will become rational and mature in the future. As distributors, we must realize that the era of low-cost resources has passed, and we must also pay attention to the recent rebound in metal material prices. There may be components that have excessively high expectations for demand and excessive human factors.” In this context, dealers expect that the metal material sales market will continue to increase in small steps in the next few months.