The global steel market has a strong trend

Following last month's rally, the international steel market, which started in June, has been booming. During the reporting period, the global steel benchmark price index at 97.2 points rose 1.5% on a week-on-week basis (the increase expanded), rose 3.3% on a month-on-month basis (from decline to rise), fell 12.2% on a month-on-year basis (the decline converged), and fell 12.3% on a year-on-year basis (the decline converged). Among them: flat steel index 88.4 points, 1.6% higher on a weekly basis (convergence); long steel index 109.6 points, 1.2% higher on a weekly basis (convergence); Asian steel index 106 points, 0.7% higher on a weekly basis (convergence).

In Asia, China's steel index rose 0.7% on a week-on-week basis at 108.1, while America's steel index rose 1.3% on a week-on-week basis at 98.9, while Europe's steel index rose 3.5% on a week-on-week basis at 81.3. Although novel coronavirus pneumonia cases are approaching 8 million, there is even possibility of "going forward". However, the trend of "booming" in the international steel market seems to contradict the logic of behavior. Fortunately, the rapid rise of iron ore price and the firmness of scrap steel price in the near future have found some reasons for the general rise of steel price. Of course, the best explanation is the consistent expectation of the global regional market for the economic and social demand for steel in the post epidemic period, as well as the factors such as excessive production reduction of European and American steel enterprises and the possible stage supply and demand mismatch caused by trade barriers, or far better than the actual data predicted by the logic of the organization.

According to the trend of international steel price and the forecast of regional market fundamentals, the international steel market in the second half of June may continue to be strong, but the performance of regional market may be differentiated.