Steel price to stay range-bound this week

Last week ferrous metal price declined after a rise, and then moved sideways. Escalating Houthi’s attack on merchant ships in Red Sea tamed China’s steel exports to Asian market to a certain extent. Suppressed by the New Year’s Day and weakening demand in north China, rebar and HRC prices appeared moderate. Futures prices dropped. In terms of the spot market, the market entered bearish territory from a strong note last week. Rigid terminal demand was monitored.
Looking at this week, steel mills' pre-holiday stockpiling may still offer a big boost to raw material price. Players will also need to be wary of high likelihood of a second round of coke price slip. In addition, there will be higher risks of furnace charge policies. Fundamentals of steel will soften. Sellers and buyers will be in a deadlock in terms of furnace charge and macro expectations before the Lunar Year holiday. It is expected that steel prices will still roll over this week.