In November 2021, the domestic steel market fell sharply. Under a series of policy adjustments such as strengthening energy supply guarantees, the prices of raw materials and fuels have fallen from high levels, the cost of steel has fallen sharply, and speculative demand has quickly faded, prompting a significant drop in steel prices in early and mid-November. Due to frequent heavy pollution weather in autumn and winter, steel mills in the north have tightened production restrictions, and some companies have suffered losses, steel production continued to decline in November, and the supply and demand of the steel market entered a weak balance pattern in the second half of the month. Steel prices rebounded slightly after a sharp drop. .

Domestically, the shortage of power supply eased in November, and the supply and demand of the manufacturing industry both recovered. At the same time, the expansion of the construction industry has also accelerated, and the real estate financing environment has recently eased, but the policy of "no speculation in housing" will not waver. With the deepening of winter, steel demand is expected to stabilize first and then weaken in December. In the later period, the focus of macroeconomic policy will be towards steady growth, and focus on fiscal and monetary policy trends.

In foreign countries, some countries have recently emerged with a mutant strain of the new crown virus Omi Keron. Investors are worried that the spread of the epidemic will endanger the recovery of the world economy and trigger wide fluctuations in the international financial market.

On the whole, due to the fair profitability of steel mills, some companies are expected to have plans to resume production in December. However, under the constraints of staggered production during the heating season, the expansion of steel production may not be large. In the short term, there is still a rush to work at downstream terminals in the southern region. Coupled with the periodic rebound of raw material and fuel prices, speculative demand and rigid demand have picked up slightly, the supply and demand of the steel market are weakly balanced, and steel prices still have certain support. With the gradual decrease in national temperature and weakening of medium-term demand, steel prices may still have room to fall.

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