Market Analysis

Last week, the focus of transaction prices in the domestic hot coil market shifted downward. The trend of the hot coil market was tangled in the first half of the week. The low market supply brought certain support to the market. The industry players were more sentimental about price support, coupled with the support from downstream demand, the range of transaction fluctuations in the hot coil market was very limited. In the second half of the week, due to the announcement of the Federal Reserve's interest rate decision, The Federal Reserve's resolution statement significantly raised the midpoint of the target range for future policy interest rates, and the inflation expectations for next year and the year after that were also significantly raised. Commodities were under pressure to decline, which led to a relatively large decline in hot rolled spot prices. Overall, downstream and terminal players are more cautious in purchasing in the market, and there is still a certain pressure on market transactions. At present, the price trend of the hot coil market is still determined by its own supply and demand. In the short term, the supply-side steel mills' hot coil production has limited room for decline; while demand is affected by seasonal factors, there are still expectations of decline in the later period, and the contradiction between supply and demand is likely to escalate. . At present, market players have certain differences in their views on the market outlook. Traders' quotations are relatively chaotic, and there is no shortage of low-price resource prices quoted in the market. The market's cautious mentality in purchasing and selling will continue. In addition, raw materials and fuels also have a certain negative feedback effect on the hot coil market, and coupled with the continued resistance to shipments in the spot market, comprehensive analysis shows that the domestic hot coil market is expected to fluctuate and run weakly this week.