The steel market is lightly traded, stocks increase, and steel spot prices continue to fall

In the early trading, steel futures fluctuated lower, and the domestic steel prices fell slightly in the morning. From the perspective of transactions, weaker steel futures and spot prices have affected the market mentality. Coupled with the continued rain and weather in some areas, most steel merchants reported that transactions were generally weak. In terms of resources, the total domestic steel inventory is currently on the high side, and the market is still facing certain inventory pressure. In the short term, the current steel market is still in the off-season for consumption, and the overall market mentality is cautious and bearish.

On the demand side, it is still in the seasonal off-season. And this year, many areas in the south have encountered floods that have not been seen in many years, which has caused 33.85 million disasters in 27 provinces (autonomous regions and municipalities) including Zhejiang, Anhui, Jiangxi, Hubei and Hunan. And heavy rainfall is still ongoing. Under the influence of heavy rains, transportation was blocked, slowing down the construction site material transportation, pouring reinforced concrete and other projects; multiple open-air construction projects were disturbed, and some projects were forced to stop, which led to a significant drop in steel demand . Speculative demand faded last week, and the average daily transaction volume of steel products by 237 traders across the country was 204,000 tons, which was lower than last week's 238,000 tons. This week's steel trading volume may remain at around 200,000 tons, still at a weak off-season level.