Steel Market Continues Volatility, Macroeconomic Policies May Become a Key Factor

On October 10, the steel spot market predominantly saw price declines, with all major varieties in the futures market also dropping. Rebar fell by 1.66%, and hot rolled coils (3668, -61.00, -1.64%) dropped by 0.89%. As market sentiment waned, steel futures continued to exhibit weak volatility. Today, coke (2232, -47.00, -2.06%) initiated the sixth round of price increases, and the market still holds certain expectations for fiscal policy. 

Steel prices continued their downward trend today. From the supply side, both long and short process steel mills' profits remained at their highest levels of the year, and steel production enthusiasm was high, with total steel output reaching its highest level since August. On the demand side, post-holiday demand has been insufficient, leading to a noticeable decline in steel prices, with terminal users adopting a more cautious attitude. In terms of raw materials, the sixth round of coke price increases has begun, strengthening the cost support for steel. Currently, both supply and demand in the steel market have shown some recovery, and changes in macroeconomic policies have had a significant impact on steel prices. Today, the new tools introduced by the central bank have caused some fluctuations in steel futures, and with strong expectations for fiscal policy, steel prices may continue to fluctuate in a narrow range in the near term. It is expected that steel prices will remain stable or slightly increase tomorrow, with a range of 10-20rmb.