Preface: After entering February, with the end of the Spring Festival holiday and the gradual recovery of consumption, the core contradiction of the market has gradually switched back to the real consumer side. The entire market is in the process of repeatedly verifying the authenticity of consumption, and the prices of cold rolled sheet and coil fluctuate around the cost range. The prices of cold rolled steel sheets and coils have moved out of the "V" shape throughout February, and the overall price bottom has moved up.

After the Spring Festival, the market supply and demand are in a tight equilibrium state, and the supply-demand contradiction is not prominent. In addition, the market resource cost support is strong, and market expectations are strong. At the beginning of February, a "good start" arrived as expected, but later due to late downstream construction, market inventory pressure appeared, and prices returned to reality with a slight decline. In late February, as consumption continued to rise, prices also rose accordingly.

Looking back at the fundamentals: in terms of supply, the entire steel plant in February had good order taking, resulting in high production and capacity utilization. The average weekly production of the steel plants in the sample was about 800000 tons/week. In terms of inventory, cold rolled sheet coils have reached a turning point in inventory in the first two weeks, and the national inventory is still at a relatively high level year-on-year. The inventory is structurally differentiated, and the ratio of steel varieties is relatively large.

In terms of consumption, downstream terminals gradually resumed production and work in February, releasing some procurement demand, but overall consumption was weak in February. The price difference between hot and cold cannot widen the gap, basically maintaining at 400-450 yuan/ton. The core issue in the current market is still the intensity and sustainability of consumption, as consumption is the core driving force behind price. So with the arrival of the peak consumer season in March and the continued increase in consumer momentum, can the prices of cold rolled steel sheets and coils enter a new small peak after a successful start?