Why does the construction steel market jump up and down?

Recently, the construction steel market ushered in the first shock after the New Year, mainly manifested as the first fall and then rise, of which the Shanxi high line performance is the most obvious, 235 line 8-10mm excluding tax prices from the 4th of 2860 yuan/ton fell to the 7th of 2740 yuan/ton, and then rose to today's 2850 yuan/ton, a cumulative decline of 10 yuan/ton, although the decline is not large, But the magnitude of the shock was huge.
Because the Spring Festival has just passed, the downstream construction site has not started, the actual demand has not been completed, and traders are not in a hurry to ship, and the market should be stable. However, in recent days, the shock has made many traders palms out of a cold sweat, the larger inventory is to reduce the warehouse to reduce the risk, and the hands of no goods are appropriate to receive goods. What are the main factors causing the wide fluctuations in market prices? Many traders have their own judgment. Zhuo Chuang believes that: mainly due to the sharp decline in futures, high spot inventories and other factors led to the decline, and then steel companies to adopt joint pricing and increase maintenance efforts to support the market price.
After the opening of the market, the period snail fell sharply, or even nearly the limit, which brought a certain negative impact on the market, and the panic caused by the market that had not been closed was intense. At the same time, it is precisely because of the continued weakness of futures that steel companies have to take certain measures to deal with it, such as joint pricing of steel companies, such as some steel companies in North China jointly increased prices by 50-100 yuan/ton to prop up prices, in order to drive futures to stabilize.
At the same time, increasing maintenance efforts is also a big means, according to Zhuochuang statistics on the 8th, 126 construction steel enterprises in the country, 390 construction steel rolling lines, of which 196 rebar production lines, a total of 194 wire production lines, of which 49 are out of production, 115 are in maintenance, the overall operating rate of 57.95%, down 4.61% from before the festival. Reducing the operating rate to support the price can be said to be a big weapon for steel companies, and the support for steel prices is absolute strength.
Although the price of construction steel has been surprised, wide shock, slightly down, but in the near future, due to the increase in the social inventory of construction steel, the construction steel inventory in 35 major cities in the country has been nearly 10 million. In addition, the inventory of steel enterprises during the Spring Festival continues to increase, so under the pressure of high inventory, the price is difficult to rise. However, in the long run, stimulated by the good news of the two sessions in March, coupled with the continuous release of demand, construction steel prices or usher in a sharp rise in the market.