At the end of the year, the demand for steel in the domestic market is weak. Affected by the restrictions on production during the heating season, steel production will also remain at a low level in the later period. The market will continue to weaken both supply and demand, and steel prices will fluctuate slightly.
 The macro-economy seeks progress while maintaining stability, and the demand for steel in downstream industries is relatively stable.
w18The Central Economic Work Conference held on December 8 emphasized that the economic work in 2022 should take the lead, seek progress while stabilizing, organically integrate cross-cyclical and counter-cyclical regulation, implement the strategy of expanding domestic demand, and strengthen the endogenous driving force of development; policy development Properly advance, actively introduce policies that are conducive to economic stability; continue to implement proactive fiscal policies and prudent monetary policies, maintain reasonable and sufficient liquidity, and increase support for the development of the real economy; implement new tax and fee reduction policies, Strengthen support for the manufacturing industry; adhere to the positioning of “housing to live without speculation”, promote the construction of affordable housing; steadily promote the construction of 102 major engineering projects in the “14th Five-Year Plan”, and moderately advance infrastructure investment and construction. On the whole, the demand for steel in the later period remained relatively stable.
The policy of reducing production during the heating season is implemented, and supply and demand are expected to form a new balance.
In February 2022, the Beijing Winter Olympics will be held in Beijing and Zhangjiakou. The two games will be held in March. In this context, this year’s heating season will place higher demands on the air quality of “2+26” cities. According to the requirements of the Ministry of Industry and Information Technology and the Ministry of Ecology and Environment “Notice on Launching Staggered Production of the Iron and Steel Industry in the Heating Season of 2021-2022 in Beijing-Tianjin-Hebei and Surrounding Areas”, covering the steel smelting enterprises in the “2+26 cities” of Beijing-Tianjin-Hebei to carry out staggered production in the heating season Production. It is expected that crude steel output will remain low in the later period, and the steel market is expected to form a new equilibrium.
The social stocks of steel declined slightly, and the company stocks continued to rise.
According to the statistics of the Steel Association, in early December, the social inventory of five types of steel in 20 cities across the country was 8.27 million tons, a decrease of 380,000 tons from the end of November, a decrease of 4.4%; an increase of 970,000 tons from the beginning of the year, an increase of 13.3%. From the perspective of corporate inventory, in early December, the steel inventory of member steel companies was 13.34 million tons, an increase of 860,000 tons from the end of November, an increase of 6.9%; an increase of 1.72 million tons from the beginning of the year, an increase of 14.8%. The decline in steel social stocks has narrowed, and corporate stocks have increased. Later, steel prices are unlikely to rise or fall sharply and will fluctuate slightly.

Post time: Dec-31-2021