Mysteel Monthly Report: The growth rate of new orders for steel structures is declining month-on-month (2024-11)

Core viewpoint: Affected by environmental protection and production restrictions, the supply and demand of raw materials are weak, and the supply-side prices fluctuate narrowly; some of the downstream demand in the early stage has been basically consumed. In November, the downstream has slightly increased the stocking of raw materials. Due to the general order performance, the daily consumption of raw materials has declined by 2.57% month-on-month; the purchase of spot rigid demand is progressing normally, the purchase volume of planned orders is insufficient, and the industry demand is expected to decline.

As of the end of October, the steel price trend has continued to rise after the high price has fallen. The market procurement performance has a general acceptance of market prices. The overall purchasing sentiment is relatively stable, speculative demand has decreased, and rigid demand performance has steadily increased under the support of national policies. It is understood that the raw material inventory of sample enterprises in the steel structure industry increased by 0.51% month-on-month, the inventory has not changed much, the industry investment mentality is cautious, and there is no obvious demand pull for new engineering project orders. Resource consumption is expected to decline by 2.57% month-on-month.

From the perspective of steel usage, the continued development of the manufacturing industry and industrial upgrading will drive the demand for the construction of industrial buildings. The demand for steel structures in projects such as factories and warehouses is relatively stable. As companies continue to increase their requirements for production environment and logistics efficiency, the renovation and expansion projects of existing industrial buildings will also increase; some public construction projects are gradually entering the stage of finishing or accelerating construction, further driving the demand for steel structures. The market share of prefabricated steel-structured housing is still small, but as people's requirements for housing quality and building industrialization continue to increase, if relevant policy support is strengthened and consumers' awareness and acceptance of steel-structured housing are further improved, its market demand may gradually increase.

According to Mysteel's survey, as of the end of October, the steel price trend continued to rise after the high price fell. The market purchasing performance was generally accepting of the market price. The overall purchasing sentiment was relatively stable, speculative demand decreased, and rigid demand was steadily increasing under the support of national policies. It is understood that the raw material inventory of sample enterprises in the steel structure industry increased by 0.51% month-on-month, and the inventory changed little. The industry's investment mentality was cautious. There was no obvious demand for new engineering project orders, and resource consumption was expected to decline by 2.57% month-on-month.

From the perspective of steel use, the continuous development of the manufacturing industry and industrial upgrading will promote the construction demand of industrial buildings. The demand for steel structures in projects such as factories and warehouses is relatively stable. As enterprises continue to increase their requirements for production environment and logistics efficiency, the renovation and expansion projects of existing industrial buildings will also increase; some public construction projects are gradually entering the stage of finishing or accelerating construction, further driving the demand for steel structures. The market share of prefabricated steel-structured houses is still relatively small, but as people's requirements for housing quality and building industrialization continue to increase, if relevant policy support is strengthened and consumers' awareness and acceptance of steel-structured houses are further improved, its market demand may gradually increase.

In terms of specific data, according to merchant feedback, the number of project orders has not fluctuated much, but the collection of engineering projects has not performed well and funds are tight. According to the sample orders of steel structure companies surveyed by our website, the month-on-month increase in new orders in November showed a downward trend. Resource demand is mainly consumed by long-term project orders, short-term orders are not obvious, and the start-up of large projects has weakened. Market procurement behavior is still dominated by rigid demand for immediate purchase and consumption.

The above content is excerpted from：https://gc.mysteel.com/a/24073110/2267EABC95D68DC7.html