Chinese Steel Market Overview of February 2024

steel coil

In February, most varieties of steel fluctuated and fell, and strong expectations and weak reality continued to game, in line with the early prediction of the decline in the market trend in February. Steel industry chain related varieties in the month 3 up 13 down, rising varieties are thick plate, welded pipe, stainless steel, the varieties of more than 2% decline is iron ore and coke, especially iron ore monthly decline of 5.26%, become the main reason for the overall downward cost, other steel varieties fell by less. From the steel price index of Zhuo Chuang information, as of February 29, the steel price index of Zhuo Chuang information 1011.14 points, down 15.86 points from 1027 points on January 31, a drop of 1.54%. Year-on-year decline of 1089.8 points in the same period of last year was 7.22%, which is an expansion of the year-on-year decline.
From a vertical point of view, the prices of key commodities in the upper and lower reaches of the iron and steel industry show a conduction decline, the overall conduction smoothness is relatively considerable, and the commodities with a large decline are mostly concentrated in the raw material end. The main driving force of the decline in the entire steel industry is the impact of the cost side, coke in the fourth round of landing, the monthly decline is second only to iron ore, also reached 3.5%, the off-season effect on the demand side has suppressed the rise in steel prices, affected by this industrial chain in the back end of the commodity prices are also in a declining state.
From a horizontal point of view, the steel industry in the back end of the steel varieties show a non-resonant decline, there are still rising varieties, varieties of differentiation is obvious. Stainless steel rose slightly, more than 1%, steel coil and wire steel fell more than 1%, and other varieties fluctuated less, more affected by the gradual weakening of the performance of the entire steel industry. It is worth noting that the effect of the Spring Festival this month is obvious, and the actual trading day brought by early holidays and late starts is reduced. After the Spring Festival, the mainstream steel varieties have different degrees of accumulation phenomenon, which affects the further trading heat of middlemen. At the same time, it is worth noting that the commodity activity of futures varieties is slightly stronger than other commodities.

Post time: Feb-29-2024