The Domestic Steel Market has Seen an Initial Upward Trend after the National Day Holiday, but Short-term Rebound Potential is Limited – Royal Steel Group

From a market perspective, this short-term price increase was primarily driven by a combination of factors. Firstly, some steel producers adjusted their production schedules based on market expectations during the National Day holiday, resulting in short-term supply shortages in some areas, which provided some support for a slight upward trend in prices. Secondly, the market was optimistic about post-holiday demand before the holiday, and some traders prepared in advance to prepare for the expected demand increase. This, to a certain extent, boosted market trading activity in the early post-holiday period, driving a slight price rebound. According to current research, the construction industry, a major consumer of rebar, has seen some projects operating at a slower-than-expected rate due to funding constraints and construction deadlines. Meanwhile, the manufacturing industry, a core demand sector for hot rolled steel coil, has been relatively cautious in its production pace due to fluctuations in domestic and international orders. Steel demand has not seen a significant surge, and post-holiday demand may struggle to maintain a sustained increase.

Regarding future steel market trends, industry analysts believe that the domestic steel market will remain in a state of supply-demand balance in the short term, with steel prices likely to remain within a narrow range of fluctuations. On the one hand, demand recovery will take time, making significant growth unlikely in the short term. On the other hand, supply stability will also constrain steel prices. Future steel price trends will depend more on factors such as adjustments to macroeconomic policies, the actual release of demand from downstream industries, and fluctuations in raw material prices.

Against this backdrop, steel traders and downstream steel users are advised to closely monitor market trends, rationally plan production and procurement, and avoid blindly following trends. They can also flexibly formulate procurement strategies based on their own production needs to effectively control procurement costs.

Overall, while the domestic steel market has shown initial signs of growth after the National Day holiday, due to factors such as supply and demand fundamentals, steel prices have limited room for further growth and will likely remain within a narrow range of fluctuations in the short term. All parties in the industry should maintain rational judgment, proactively respond to market changes, and jointly promote the stable and healthy development of the domestic steel market.