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The domestic steel market will present a grinding bottom

Release time：2023-05-06 Click：

At present, the domestic steel market will exhibit a pattern of "slight decline in supply, insufficient release on demand, and significant downward shift in cost". From the perspective of the supply side, due to the fluctuation and decline of steel prices, the pressure of losses is once again hitting steel companies, and the reduction of production by steel mills is accelerating the implementation process. In the short term, the supply side will show a slight decline. From the demand side, due to the slowdown in demand for manufacturing steel and the insufficient demand for construction steel, the willingness of downstream end users to purchase is still not strong, resulting in less than expected release of pre holiday replenishment demand. Meanwhile, the pace of construction during the holiday will slow down, and it will be affected by the rainy season in the south after the holiday. From a cost perspective, with the gradual implementation of production reduction operations in steel mills, raw material prices have also shown a significant downward trend. The downward movement of production costs will form a significant negative feedback on finished materials. It is predicted that the domestic steel market will show a fluctuating and bottoming out trend, and some regions or varieties may experience a slight rebound.

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