Price trend

As of September 23, 2019, the price of futures snail 1910 closed at 3774, up 68, or 1.83%. Affected by this, the profile market improved, but the price of finished products rose and fell, and the market turnover was general.

Analysis review

In terms of cost, the National Day is approaching, and the policies of environmental protection and production restriction are frequent in various places. Most rolling enterprises are shut down and production of steel products is bound to be limited. With the stimulation of futures market, the bidding psychology of manufacturers becomes stronger.

On the market side, due to a replenishment operation at the beginning of September, downstream purchases have been cautious recently, while festivals are approaching, downstream construction sites have been shut down one after another, and the demand situation has a downward trend. Therefore, there are few purchases of high-level resources by the merchants in the profile spot market, and the overall market turnover is general.

On the supply and demand side, news of limited production continued, large-scale steel mills across the country were shut down, steel production is expected to decrease, steel supply is tight; because downstream construction sites are shut down, demand maybe decline, but considering the severe traffic situation after National Day, steel transportation will inevitably be affected, coupled with low market inventory, there may be centralized purchasing and replenishment operations at the end or before the festival.

Market outlook

Generally speaking, the cost side supports the rotation, the profile supply and demand fundamentals are tightened and balanced. There may be a warehouse replenishment operation before the festival, and the profile price is expected to shock strongly in short-term.

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