On the last day of September, Shanghai Futures Exchange witnessed a mild rise of steel futures. However, it has not changed the downward trend of Chinese steel market.
According to industry insiders, the market is now facing quite a lot of negative news and uncertain policies.
So if there is anything to be sure, that is that steel price will not go back up soon. Basic conditions are against sharp price rise after the National Day Holiday
Judging from the storage of steel products in the recent days, demand in China’s domestic steel market is obviously not strong enough to bring about any dramatic change. Until September 25, the national storage volume of rebar has increased by 0.16%, and that of wire rod has increased by 4.59%, which has ended previous shrinking of construction steel storage. The rising storage will surely shock the market quite much.
As pointed out by analysis, demand is largely replaced by wait and see during the steel price is falling. Moreover, the 11 day long National Day Holiday also affects the behavior of traders and steel factory to some extent.
Therefore, it is quite possible that the sales level of October will not reach that of September.
Source: Steel Guru
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