The main considerations of later steel price adjustment

In the later stage, several factors are worthy of attention: First, whether downstream companies’ purchase cautiousness and increased bargaining willingness will inhibit demand elasticity, which will lead to a weakening of demand-side steel price pull; Second, the downward trend of new real estate construction indicators has yet to be confirmed. In the context of ever-tightening, if new construction continues to decline, the market's expectations for the supply and demand pattern will weaken again.

The third is whether the rumors of the reduction or cancellation of the hot rolled steel coil export tax rebate will be confirmed. If it is true, it will inhibit exports and impact the price of hr coil; Fourth, as the steel price rises and the price of main raw materials falls, the production profit of steel plant will improve rapidly, the price of coke may continue to decline in the later period, and the cost support of steel price has been weakened obviously. Once the demand is less than expected, it will lead to a decline. As a result, there is more room for steel price adjustment.