Decline in construction steel prices since mid-late October

According to the report released by the steel spot trading platform “Nishijin Shinkansen”, after a repeated range shock, the latest round of construction steel price declines are close to 8%, and the domestic steel market has entered the off-season “strong supply and weak demand” pattern. The rebound in the previous round of construction steel prices began in early September and the rebar price peaked in mid-October. From mid-to-late October, the steel price changed to range turbulence, and from mid-November, it entered an accelerated decline. The comprehensive price of construction steel has fallen by 310 yuan per ton, a decrease of 7.8%, of which the monthly decline in November reached 240 yuan.

Although construction steel prices have continued to fall, traders are generally operating in “low positions” because the social consumption of steel products remains low and corporate financing is difficult. After the entire steel industry has entered the stage of low growth, the "financing leverage" of steel is being weakened. The traditional "winter bank's market" has been difficult to repeat. "Although the recent decline in the price of construction steel, but the company's purchase volume this year has decreased a lot." Beijing Wanshunfa Electronics Co., an employee said.