EH36 material prices should not have a sharp drop for a short period of time

So far, China's EH36 material and steel market is basically healthy. It is mainly reflected in the decision-making departments to expand domestic demand, especially to stabilize the way of investment in infrastructure, to cope with the severe external environment, to defuse the downward pressure of the economy. For example, monetary policy tends to be loose, fiscal policy is more active, tax reduction, support for private enterprises and small and micro enterprises, etc.

With the gradual emergence of the above policy effects, China's domestic demand for EH36 material and so on steel continued to be strong in the fourth quarter of this year, thus digesting the ever-new steel increment, and the national steel social inventory continued to be low.

At the beginning of November 2018 (November 2), the national comprehensive inventory index of EH36 material and so on steel was 87.6, 53% lower than the peak of the first quarter of this year (March 9), and 1.7% lower than the same period last year. Among them, the inventory index of long timber is 95.6, which is nearly 70% lower than the peak in the first quarter of this year (March 9), and 14% lower than the same period last year.

It is this healthy fundamentals that boost market confidence and do not have the basis for a sharp drop in EH36 material and so on steel prices in a short period of time.

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