Analysis Of Steel Price Trend On February 15, 2022

Analysis Of Steel Price Trend On February 15, 2022

Steel Rebar is mostly traded on the Shanghai Futures Exchange and London Metal Exchange. Steel is one of the world’s most important materials used in construction, cars and all sorts of machines and appliances. By far the biggest producer of crude steel is China, followed by European Union, Japan, United States, India, Russia and South Korea.

As the demand for construction projects in China has not been restored after the Spring Festival holiday, and due to the Olympic Games, production restrictions in northern China still exist. Thanks to the efforts of the Chinese government, the energy supply situation has improved significantly recently. During the Spring Festival holiday, all regions and central enterprises have made efforts to stabilize coal production and supply and scientifically arrange production and sales. The daily output, supply and shipment of coal are higher than those in the same period of the lunar calendar, effectively ensuring the demand for coal during the festival. Coal production in various regions has rebounded rapidly and has basically returned to the pre holiday level. The coal storage of China's unified dispatching power plant remains above 165 million tons, an increase of more than 40 million tons over the same period last year. With the accelerated recovery of coal production, the demand for coal in superimposed heating season has decreased, and the guarantee capacity of coal supply will be further enhanced.

1. Steel Price

On February 15, 2022, the price of steel reached US $755.36 per ton.

2. Future of Steel

The steel is expected to resume upward momentum later in February as China’s government plans infrastructure investments in a bid to boost economic stability. Steel is expected to trade at US $768.59 per ton by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, they estimate it to trade at US $716.34 per ton in 12 months time.

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