The steel market in the last two months of 2020 may improve as a whole

Since November, China's steel peripheral market has been slightly volatile. Due to the support of Tangshan's production restriction, import and export data and the continued expansion of the PMI index, China's domestic economy has continued to improve. The US presidential election+Chinese manufacturing PMI+import and export+Tangshan production restriction can be said to support the price rise of steel market with multiple benefits.

First, in the early morning of November 8, Beijing time, the mainstream media of the United States announced "Biden won the election", and many national leaders congratulated him. Although most of the national elections are not global events, the American elections have a certain impact on the global financial markets directly or indirectly.

Second, with the continuous expansion of domestic demand, China's economy is recovering rapidly from the negative impact of the COVID-19. At the same time, the continued expansion of China's manufacturing PMI means that China's manufacturing industry is gradually recovering to the level before the outbreak of the epidemic.

Third, according to the latest data released by the General Administration of Customs, China's foreign trade import and export in October was 2.84 trillion yuan, up 4.6% from the same period in 2019, which is also the fifth consecutive month of positive growth in the total value of foreign trade import and export since June. According to the current situation, positive factors at home and abroad are still accumulating, and China's foreign trade is expected to continue to grow steadily throughout the year.

Fourth, on November 8, the Tangshan Municipal People's Government issued the Notice on Launching the Level II Emergency Response for Heavily Polluted Weather. Since 8 o'clock on November 9, 2020, Tangshan has launched the Level II Emergency Response for Heavily Polluted Weather, and iron and steel enterprises around Tangshan have implemented production suspension and production restriction to varying degrees. Due to the boosting effect of the production environment, the price of square billet rose by 50 yuan to 3560 yuan/ton, the price of strip steel and section steel generally rose by 30-50 yuan/ton, and the price of sheet steel rose by 30-60 yuan/ton, but traders in some regions blocked the inventory and suspended the quotation to wait and see the future.