Will short-term steel prices maintain a volatile trend

Overall, with the improvement of the recovery speed of the manufacturing industry and the rapid recovery of construction activities, the overall steel consumption performance exceeded expectations, greatly improving market confidence. With the gradual opening of the peak season, the countercyclical adjustment effect of infrastructure construction has emerged, steel structure consumption has significantly increased, and projects such as municipal and housing construction are also launching, forming a rapid rebound in building materials consumption. The production of building materials is also increasing synchronously with the restoration of profits, and the pace of inventory depletion has increased.

However, due to the impact of profits and raw materials, the improvement rate of plate supply is limited, resulting in a continuous inventory depletion. Currently, the overall steel industry is still in a period of low production, low inventory, and low profit. We believe that the short-term steel price will maintain a volatile trend.