After the 2205 stainless steel plate price was weakened last week, this week's rebound was weak. Analysts have analyzed from the perspectives of supply and demand, policy, and technical form. Although they all make sense, it is difficult to give convincing reasons.
Some people in the industry believe that the current supply and demand side has not changed much, and the reduction in demand is something that can be judged by a little common sense. The market has pre-judgment.
As for the policy of eliminating backward production capacity, since the elimination of several blast furnaces that were discontinued last month, there have been no other major actions by the government, and there is almost no impact on production.
The technical form analysis itself has a large degree of uncertainty, and it is hard to be convinced before the form is gone.
At present, the key concern is the 2205 stainless steel plate industry funding. The current trend of 2205 stainless steel plate prices is largely determined by its funding.
Due to the long-term meager profit, steel companies have limited profits; and new equipment and raw materials purchases require a large amount of capital investment, so steel mills are increasingly dependent on banks.