Recent Hot And Cold Rolled Coil Market Weak Characteristics Are Obvious

From the perspective of supply and demand pattern, the weak characteristics of cold and hot rolled coil market will continue for a period of time.

First, in the short term, the effective demand intensity of the downstream terminal is difficult to increase significantly.

From the automobile industry, although the manufacturing export volume showed a downward trend in the second half of this year, but due to the resilience of domestic consumption, the manufacturing export volume decreased slightly, the decline rate is slow, but a wide range of power rationing policy on the production of home appliance manufacturers caused a large impact.

Second, off-peak production has an impact on the release rhythm of market resources.In the first stage, from November 15, 2021 to December 31, 2021, the reduction target of crude steel output in the region will be ensured.The second stage, from January 1, 2022 to March 15, 2022, in order to reduce the increase of air pollution emissions in the heating season as the goal, in principle, the proportion of off-peak production of iron and steel enterprises in the relevant regions is not less than 30% of the crude steel output in the same period of the previous year.Many industry insiders believe that the impact of this policy on later supply will exceed market expectations, and the 2022 Winter Olympics, which will start in early February, will have higher requirements on air quality, which will inhibit the release of steel industry attack.

Li Zhongshuang expects that from the current crude steel production reduction situation, the production of hot and cold rolled coil continues to decline, which also to a certain extent to curb the late hot and cold rolled coil market price decline.

Post time: Nov-09-2021