Short-term steel price to see limited upside or downside room amid greater impact of seasonal demand reduction

Ferrous metal market swung narrowly last week. At the beginning of last week, an interest rate cut by the Fed beat expectations. In the middle of last week, macro news unfolded constantly. It was reported that China mulled over issue of 1 trillion yuan of ultra-long-term special government bonds, which boosted market sentiment. Therefore, steel futures price started inching up. In terms of spot market, spot demand further diminished with the upcoming Lunar New Year.
Looking forward, SMM research showed that waning impact of maintenance of steel mills and pre-holiday stockpiling will leave raw material price with limited room to dip in a short term. Steel demand will seasonally soften. It is expected that steel price will still track swings of raw material price this week.