In recent years, the iron and steel industry has been China's main pillar industry and the cornerstone of China's economic development. At present, China's steel industry has the largest production capacity in the world and is the world's largest steel producer. As a major steel country in the world, hundreds of thousands of domestic steel traders play an important role in the steel industry. Zherui Steel can become a part of the steel industry and contribute its own strength to the construction of the country. It is the best feedback for itself in 2019.
Zherui Steel now ushers in 2020. At present, the macro situation of the steel market is generally good, especially the expectation that the RRR cut will still support the capital market. However, from a fundamental point of view, the steel industry as a whole is in the stage of accumulation, especially the acceleration of building materials, which is related to the decline in seasonal demand.
In terms of production, it is closely related to the current environmental protection and production restriction. With the lifting of the heavy pollution warning, there is still room for a slight increase in future production. From the perspective of demand, the demand in the north is at a relatively low level, and the construction site utilization rate in the south has declined. As the peak period ends, the downward trend in downstream demand will become more prominent. From the end of December to early January, automobile transportation will gradually stop, and winter storage will also come to an end with the stagnation of transportation. After mid-January, the market will also be close to closing and price volatility will decrease.
Therefore, the steel market has half a month's time, and this period will also be the period when the merchants prepare for stocking at the end of the year. Market transaction volume and winter reserve orders will also affect inventory next spring, which in turn will affect the fluctuation of steel prices. However, considering the continued accumulation of inventory, but the macro is favorable, it is expected that steel prices will stabilize in the weak operation in the future, and the North China region will stabilize. The South China, East China and Southwest markets still have a slight room for decline.
To build a well-off society in an all-round way in 2020 has come. In the new year, Zherui Steel hopes to create more achievements.