What factors caused 40Cr steel price change in June

In June, the growth of the main steel industry accelerated, and the demand for steel in the domestic market was strong. However, due to the rapid release of steel production capacity, steel exports continued to decline, the market situation of oversupply remained unchanged, and steel prices showed a small fluctuation trend. So it is with 40Cr steel price.

1.The recovery speed of downstream steel industry was accelerated, and 40Cr steel etc. steel demand situation was further improved.
In the second quarter, GDP grew by 3.2% year-on-year, and the growth rate changed from negative to positive. In June, the added value of industries above designated size increased by 4.8% on a year-on-year basis, 0.4 percentage points faster than that of the previous month, and the growth rate accelerated for four consecutive months; the PMI of China's manufacturing industry was 50.9%, up 0.3 percentage points from the previous month, and more than 50% for four consecutive months. On the whole, the domestic market demand for 40Cr steel and so on steel is strong.

2.Iron and steel production capacity was released rapidly, and the situation of oversupply remained unchanged.
According to the National Bureau of Statistics, in June, the output of pig iron, crude steel and steel (excluding repeat materials) increased by 4.1%, 4.5% and 7.5% respectively year-on-year. According to Customs Statistics, in June, China exported 3.701 million tons of 40Cr steel and so on steel, a year-on-year decrease of 30.2%; and imports of 1.878 million tons of steel, a year-on-year increase of 98.7%. Due to the rapid release of steel production capacity, the net export of 40Cr steel and so on steel decreased significantly, and the market situation of oversupply remained unchanged.

3.Driven by steel production, the price of raw materials rose month on month.
With the month on month growth in 40Cr steel and so on steel production, the prices of imported iron ore, domestic iron concentrate, metallurgical coke and scrap steel continued to rise at the end of June.