Boosted by macro expectations and costs, short-term steel prices to fluctuate at high levels

Ferrous metal prices stood high last week. At the beginning of last week, relevant regulators conducted a survey on price index of steel and other products. In the second half of last week, affected by factors such as some industries entering a slack season and muted demand, the manufacturing PMI in November was down 0.1 percentage points MoM, denting market sentiment to a certain extent. In spot market, demand seasonally weakened amid falling temperatures in many places in north China. Rebar stocks ceased dipping and started hiking last week.

Looking forward, strong cost support is strong and an important macro meeting expected to be held in mid-December will leave steel prices with limited room to move up, and short-term steel prices may still stand high, and may dip with waning positive macro news and inventory build-up.