Stainless steel is easy to rise but difficult to fall in the short term
Postdate：2023-04-12 Clicks：344
2021 is a year of comprehensive economic recovery. Under the background of the gradual promotion of COVID-19 vaccine and the sustained recovery of economy and consumption, the short-term price of stainless steel is easy to rise but difficult to fall.
Since the beginning of the year, the overall price of stainless steel has shown a strong oscillation trend. In early January, the overall inventory in the stainless steel spot market was tight, with most merchants holding up prices. In mid January, the main contracts for stainless steel futures fell below the limit, and some merchants lowered their prices. However, the market for high carbon ferrochrome in the raw material end was relatively strong, and steel mills controlled the pace of shipment, with the market price mainly rising. From the end of January to the Spring Festival, downstream actively hoarded goods, and the market transaction atmosphere was decent. With the end of the Spring Festival holiday and the gradual recovery of downstream demand, it is expected that stainless steel will maintain a strong oscillation pattern in the first quarter of 2021.
Continuous improvement on the macro level
Domestically, in January 2021, Caixin Chinas manufacturing PMI decreased by 1.5 percentage points to 51.5, the lowest since July 2020, but it is still in the expansion range for the ninth consecutive month. The supply and demand of the manufacturing industry continue to expand, but the speed has significantly slowed down; The repeated overseas epidemic has led to a decrease in orders for foreign trade enterprises, significantly suppressing external demand. The official manufacturing PMI of China in January was 51.3, with an expected 51.3, compared to the previous value of 51.9; The non manufacturing PMI was 52.4, with a previous value of 55.7, marking the second consecutive month of decline; The PMI of the service industry was 52.4, with a previous value of 55.7, the largest decline since February last year. In December 2020, the CPI rose to 100.2, a year-on-year increase of 0.2%.
Overseas, multiple countries have strengthened epidemic control. The US House of Representatives approved the budget coordination plan of the COVID-19 Relief Act. The Federal Reserve frequently mentioned a reduction in bond purchases in early February, raising market concerns.
Overall, domestic consumption remains the "ballast stone" for stable economic operation, with impressive import and export performance. The domestic economy is gradually getting rid of the impact of the epidemic and is generally improving. Overseas, monetary policies in Europe and the United States continue to be loose, and the European Central Bank intends to raise interest rate cutting expectations. Coupled with the continued fiscal stimulus expectations of the Biden administration, the market remains optimistic.
Fundamental benefits highlighted
