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The best time for the winter storage of GI/GL/PPGI Steel Coil


What is the situation of steel winter storage this year? Is it the best time to store for galvanized steel coil, alu-zinc steel coil and PPGI steel coil? What is the future demand for steel?

1. Price
China's steel prices have fallen sharply, with major cities falling by 8-10$/ton. After the drop, transactions have been active, and the cost of winter storage is low, which is conducive to the release of demand by steel traders.

2. Inventory
The national social inventory of hot-rolled coils was 1,979,600 tons, a year-on-year decrease of 364,400 tons, a month-on-month decrease of 103,500 tons, and a week-on-week decrease of 74,900 tons. On the whole, the supply-side production restriction continues, and the actual demand is strong. At present, the steel market has a weak supply and strong demand pattern.

3. Traders
The enthusiasm of steel traders to store goods in winter: 
firstly,affected by the current winter storage prices; secondly, affected by the price of steel products after the Spring Festival next year. 
The prices for winter storage issued by steel mills are lower, and the price of steel products will increase after the holiday next year, which will increase significantly the enthusiasm of steel traders for winter storage.

4. The government’s policy
The economic conference of the Chinese Government proposed to "appropriately advance infrastructure investment". At the beginning of next year, infrastructure investment have a strong support for steel demand, while overseas demand is also increasing. On the whole, the implementation of the macro-level stabilizing growth policy, the overall future steel demand tends to stabilize and strengthen.
From a policy perspective, next year's policy of stabilizing growth will be exerted. The certainty of infrastructure growth and the loosening of real estate margins will support steel demand. On the whole, this year's winter storage prices are significantly higher than last year, and winter storage needs to be cautious.

Is it the best time to "winter storage"? After the holiday, steel prices are facing upward pressure and are suitable for winter storage stocks. From the supply side, the heating season is environmentally friendly and limited production. However, under the pressure of low profits, steel mills are less motivated to resume production, and the average daily crude steel output in the first quarter of next year is expected to decrease significantly. From the demand side, China generally started construction in late February, and foreign customers increased their purchases, and later demand for steel increased. Therefore, judging from the changes on both ends of supply and demand in the first quarter of next year, steel prices still face a certain amount of room for increase.