Today's purchase analyzes some of the factors that affect the price of
hot rolled coils. The first is that the domestic market capital supply affects the price level of hot rolled coils. When the market funds are relatively sufficient, it usually corresponds to high prices, and when the funds are relatively tight, they often correspond to low prices. Taking 2011-2012 as an example, due to the bank's cautious lending to the “two highs and one capital” industry,
the steel industry is generally tightly funded, which has become a major factor affecting the low-cost operation of hot rolled coils.
Then there is the impact of market expectations on the price of hot rolled coils. The expected change in the market is to influence the price of hot rolled coil by changing supply and demand and market capital. If the hot-rolled coil market is expected to show an upward trend in the future, traders and downstream companies will consider large-volume purchases or stocks, further stimulating the price increase in the hot-rolled coil market, and vice versa.
