From January 26th to January 30th, the trading situation in the Shanghai steel market remained generally weak, with terminal demand continuing to shrink. Traders generally faced difficulties in shipments, sales decreased significantly, and prices continued to decline. Most merchants focused on low-price promotions to recover funds. The price trends of major steel products during the week were as follows: the market prices of rebar and wire rod continued to fall, the market prices of medium and heavy plates declined overall, the market prices of cold-rolled and hot-rolled coils saw an accelerated decline, and the market prices of section steel experienced a downward consolidation.

According to information gathered by operators during research, the Shanghai construction steel market continued to linger in a sluggish and depressed state, with poor market sales, a sharp decline in volume, and a gradual drop in prices. Operators are not optimistic about the market conditions in February and remain highly concerned about the uncertain factors affecting the future market. The current uncertainties are mainly reflected in the following aspects: First, both terminal and intermediate demand have declined. As the Spring Festival approaches, construction projects have largely halted, and many sites have stopped purchasing steel. Traders, facing year-end capital shortages, are generally not stockpiling. Therefore, terminal and intermediate demand will continue to shrink in the later period, making it difficult to support a rebound in steel prices. Second, the "price war" has reignited. Currently, steel traders are generally bearish on the future market, with most focusing on low-price promotions and offering discounts on transaction prices to "exchange price for volume." The intense price war has led to a continuous gradual decline in market prices. Third, steel mills have frequently lowered their ex-factory prices, and competition among manufacturers has intensified. Recently, the pressure on winter orders for steel mills has further increased. To attract steel traders to place orders, mills have successively reduced ex-factory prices and introduced preferential policies. Fourth, supply is excessive, and inventories are growing. According to statistics from the China Iron and Steel Association, the daily crude steel output of key enterprises in early January was 1.7849 million tons, a increase of 3.63% compared to the previous ten-day period. By the end of early January, the steel inventory of key steel enterprises stood at 13.637 million tons, an increase of 2.98% from the previous ten-day period. Fifth, the phenomenon of stronger demand and higher prices in the south compared to the north persists. In mid-January, the price of Grade III rebar in Beijing fell to 2,230 yuan/ton, with high-quality coil rebar quoted at 2,360 yuan/ton. During the same period, the price of Grade III rebar in the Shanghai market was 2,470 yuan/ton, with high-quality coil rebar quoted at 2,670 yuan/ton, a difference of 240 to 310 yuan/ton between the north and south. As a result, the flow of "northern steel to the south" remains strong, increasing sales pressure in the southern market. Sixth, steel mill maintenance has increased. According to research data, as of January 21st, a total of 12 blast furnaces from 12 large and medium-sized steel mills in China were under maintenance, expected to affect pig iron production by approximately 896,000 tons. Additionally, 10 construction steel mills have halted production for maintenance of wire rod and bar rolling mills, expected to affect construction steel production by approximately 781,000 tons. In summary, it is expected that the market prices for construction steel in Shanghai will mainly consolidate in the later period, with a significant rebound unlikely to occur.