China Science and Technology Hardware City, metal prices slightly higher

“Early energy-saving and emission-reduction work has been effective. The output of major steel mills in the country has declined. At the same time, from October 27th onwards, some steel mills have begun to implement production-limiting measures. The market resources in the later period will decline, the market supply will decrease, and the inventory will decline. Obviously, since November, the price of metal materials has shown an upward trend.” Loading, unloading, rolling, drawing, and the buzzing noises... I walked into the Jindu Market Metal Materials Trading Zone of China Science and Technology Hardware City. It is a prosperous trading scene that catches the eye. Li introduced the metal materials such as round steel, square steel, and wire profiles in the market. “But according to past practice, after entering the winter, western countries began to prepare for Christmas, and the export of hardware products will be reduced. The demand will fall, and the steel prices will also fall back.Therefore, it is expected that the steel market will continue to fluctuate and fluctuate in the middle and late December, showing the trend of rising first and then decreasing, but the overall trend has declined from the previous month.

“Because of the interest rate hike, energy saving and emission reduction, and the impact on real estate regulation and control, the recent **, the stock market volatility is more frequent, the spot market also follow the adjustment. But with the end of the 'Eleventh Five-Year Plan' and 'Twelfth Five-Year Plan' The forthcoming introduction of this will surely spur the national economy to rebound toward stability and gradually develop into a recovery. This seems to us a relief.” For the busy scenes of the dealerships in the trading area, the steel plates used in the security doors were operated in the market. Shi Mou heart is also stable. According to the author's visit, in fact, like Shimou, most of the business households that have optimistic attitude towards the future metal materials trading account for the majority.

With the economic recovery at home and abroad, people's consumption mentality has changed, but it can be regarded as the fact that: As the current economic development, the purchaser's consumption mentality has begun to gradually stabilize and recover, and the confidence of the market has recovered and improved. "In the consumer mindset, people have the habit of 'buying up and not buying or falling'. With the rise in commodity prices, there is concern about inflation, confidence in the future is sufficient, and prices rise, but they dare to spend." Shang Hu's speech broke the consumer psychology of downstream buyers. “The rise in shipping costs, the rising cost of imported raw materials, and the impulse of price increases for nickel ore and coke, all of which will drive up the production costs of metal materials and paves the way for higher prices for metal materials. In addition, once the foreign economy recovers quickly, The rebound of pig iron, steel, stainless steel, copper, aluminum, zinc, nickel and other metal materials is immediately established, and the price is bound to regain strength. At the same time, with the development of large-scale infrastructure construction in various large and medium-sized cities in China, the wealth effect of the capital market, Inflation expectations and other factors will continue to steadily increase the total consumption of metal materials. In the short term, domestic demand will continue to grow steadily, and the recovery of external demand and fixed assets investment projects will be promoted as soon as possible. This will inevitably maintain strong demand for metal materials resources. ."

However, optimism is optimistic. Some dealers still plan ahead. “The recent real estate regulation has a greater impact on the real estate market, the 11th Five-Year Plan is about to end, infrastructure and housing construction are slowing down, and downstream demand is shrinking. After the state controls the real estate market again and again, various regions have successively issued regulations on real estate regulation. The transaction volume of housing has fallen again, and the construction of houses has been affected. The price of construction steel has also been implicated.” In addition, some dealers stated that the winter in the north of the country has come earlier this year and the temperature is lower than in previous years. The outdoor construction in the northern regions will gradually decrease, market demand will gradually decline, the demand in the southern market will be better, the northern resources will flow in the south, and the north and south markets will produce differences. At the same time, after the conclusion of the Shanghai World Expo, construction projects that have been shelved will be started one after another. The convening of the Guangzhou Asian Games and Paralympics Games, freight transportation, and other aspects will be restricted, and resources will be pressured to circulate in the Central and South China regions. At the same time, the cost of winter storage is relatively high this year, and businesses have some concerns.

“From the point of view of short-term development, the overall foreign trade environment remains sluggish, and the world economy has not yet fundamentally improved, but in the long run, the fundamentals that affect the strong demand for metal materials resources will not fundamentally change. Therefore, it is expected that the future A few months of metal materials sales will show a tendency to fluctuate.Experience shows that a healthy, mature market will never allow long-term 'crazy' performance of a certain industry or a certain product.The metal material market has experienced 'soaring'. Having experienced the roller coaster-like ups and downs such as 'Plunge', it will become rational and mature.As dealers, we must realize that the era of low-cost resources is over, and we must also pay attention to the recent rebound in the price of metal materials. There may be ingredients that are expected to have too high demand and too much human factors.” Against this backdrop, dealers expect the market for metal materials to exhibit a small, continuous increase in sales in the coming months.