Steel market will usher in peak sales season

After the national two sessions, the steel market will usher in the peak sales season in March and April, and the increase rate of steel inventory is expected to slow down. After a short-term slight fluctuation, the steel price will still be dominated by strong operation.

First, infrastructure construction will still be an important starting point for the realization of economic double cycle in 2021, and some national key projects will be launched one after another. The government will continue to support major projects to promote regional coordinated development, promote the construction of new infrastructure, new urbanization, transportation and water conservancy and other major projects, and let the government invest more in livelihood projects that benefit a wide range of people.

Second, in 2021, the active fiscal policy should improve quality and efficiency, be more sustainable, and support the steel demand to remain strong, which is good news for infrastructure investment and the promotion of affordable rental housing construction.

Third, adhere to the strategic basis of expanding domestic demand, fully tap the potential of the domestic market, stabilize and expand consumption, and increase residents' income through multiple channels. This is expected to stimulate the consumption of home appliances, automobiles and other downstream industries, which will benefit the steel plate industry.

Fourth, in the international aspect, with the vaccination in the world in 2021, the world economy is expected to speed up the recovery, and various countries have introduced economic assistance plans. The continuous improvement of the international economic situation will lead to the increase of domestic export orders and indirect steel exports.

Fifth, China will continue to strengthen the ecological environment management, and do a solid job in carbon peak and carbon neutralization. In this context, the production limit of environmental protection will tend to be normalized, and it is imperative to reduce the output of crude steel. This will have a certain impact on the supply of market resources.

According to this, it is expected that the steel production rate will fall this year, and the demand for steel will increase significantly driven by the expected good economic growth this year. In the process of "one decrease and one increase", the contradiction between supply and demand of steel market will be further eased, which is conducive to the stable operation of steel price.