Raw Material Price Outlook For Steel Pails

Steel, the main raw material for steel pails, had mediocre market development in 2022. It is interesting to look back at the market during the year. After the beginning and the end, there has been a "bear market" atmosphere. Steel prices have gone out of the ups and downs. "Sense of rebellion". Of course, such a market is inseparable from the raging epidemic, the tense international situation, the Fed’s interest rate hike, shrinking external demand, weak domestic demand and many other intricate factors.
This article explores the outlook for the coming year.
This year's New Year's Day and Spring Festival are short, and the market has entered a closed cycle ahead of schedule. The market has entered a half-holiday state since last week. More than half of the merchants will be on vacation this week. Mainly. The market is expected to return to work one after another at the end of the month, and demand will gradually pick up in February.

First of all, look at the supply side. Before the festival, winter storage is rarely done in the market, and the accumulated pressure after the year is relatively controllable. In addition, the production situation of steel mills cannot be bypassed due to cost considerations. The current cold and hot price spreads are too narrow, and the profits of steel mills are seriously inverted, inhibiting production enthusiasm. It is expected that the supply after the festival will be normally low. Looking at the demand side, although the full liberalization of the epidemic is conducive to the recovery of market activity, freezing three feet is not a one-day cold, and the release of consumption requires a transition period. At present, there is no significant improvement in downstream orders, and the increase in export orders is also very small. , It is expected that the demand performance in the next year will be average.
The steel market is mediocre, reflecting that the entire economy has not yet recovered, and the downstream demand for steel drums is also not strong. If the two balance out, the overall market for steel pails is also average.