卓创资讯: The weak trend of hot-rolled coil has been established before the New Year, and there may be a turning point after the New Year

Before the Spring Festival, the prices of hot-rolled coil fluctuated and weakened, with the price center gradually moving downward. The main reasons are as follows: First, on the supply side, as February arrived, maintenance at hot-rolled steel mills gradually ended, and steel mills resumed full production. According to Zhuochuang Information monitoring, the average daily output in February increased by 28,000 tons compared to January, leading to increased supply pressure for hot-rolled coils. Second, on the demand side, as terminal procurement gradually completed, market demand cooled down, and supply conflicts intensified. Third, regarding macro news, domestic positive news was fully released, while international negative news drove gold, silver, and bulk commodities lower, causing hot-rolled coil prices to decline accordingly. Lastly, on the inventory front, since last week, social inventories have turned to an upward trend. The effect of traders reducing stocks has been moderate, with merchants lowering prices to clear inventory and recover funds, accelerating the price decline. The price decline before the Spring Festival seems to be a certainty. Looking after the festival, prices may potentially fluctuate and rise, mainly considering that important meetings are scheduled after the festival, which could boost market sentiment and drive prices up. However, given the high inventory levels and supply-demand contradictions, the price increase is expected to be moderate. (Zhuochuang Information)