Steel prices generally soared after Chinese Spring Festival

     In the first week after the festival, domestic steel prices rose continuously, and most of the steel varieties increased by more than 200 yuan / ton compared with those before the festival. In particular, the price of steel billets rose sharply. The price of steel billets in Tangshan reached 4140 yuan / ton, rising nearly 300 yuan in three days, setting a new record in recent years.

     This week's steel price continued last week's market. Industry insiders said that the post Festival project will usher in a wave of construction, the release of traders' demand for inventory replenishment, and the price of iron ore and coke as raw materials for steel making will remain firm, which will drive the strong rebound of steel price after the festival.

     Futures are also rising. Experts said that the sharp rise of the black futures market was mainly driven by good psychological expectations, such as the rise of overseas commodity prices during the Spring Festival holiday, the expected sustained recovery of the global economy, and the demand for replenishment in the downstream after the festival.

     In addition, some experts said that before the festival, not only the cost of winter storage for traders is high, but also the production cost of steel plants is high, which also leads to the increase of capital interest cost. Under the background of black futures, the market will support the price, and the price of construction steel will fluctuate at a high level this week.

Aftermarket steel prices can continue to push up how long? Read a senior fellow at the institute sunrain believes that in the long term tide of The Times, China has been infrastructure in terms of the structure of investment in fixed assets, there have been some shrinkage in folk, the contracted is increasing, so steel prices are less likely to continue to rise for a long time, because demand is not sustainable.

     How long can steel prices continue to push up in the future? Cheng Yu, a senior researcher at the Institute, believes that in the long run, China has passed the era of infrastructure construction. In terms of the investment structure of fixed assets, there has been some shrinkage in the private sector, and the shrinkage is increasing. Therefore, it is less likely that the steel price will continue to rise in the long run, because the demand is unsustainable.