China’s low-priced steel market turbulent factors ruled out steel prices from the second half of the year to rise month by month | Anue Juheng – Juheng New Vision

The international steel market has entered a period of adjustment. From the perspective of Asia, the main steel mills in China and Vietnam, as well as the domestic Sinosteel (2002-TW) The latest market prices have all fallen. However, according to industry analysts, the current international steel demand is still stable. With the gradual lifting of China’s blockade control, the impact of low-priced steel on the market has been weakened. After entering the second half of the year, Asian steel prices are expected to increase month by month. turn stronger.

After the outbreak of the epidemic in China, the lockdown measures were adopted, which resulted in the obstruction of steel logistics and weak supply and demand, which not only led to a decline in the domestic circulation market, but also under the influence of sluggish domestic demand, Chinese steel products were also sold at low prices in the Southeast Asian market. All lead to shocks in the Asian steel market.

However, since mid-May, Shanghai announced the gradual unblocking, and the epidemic situation in some parts of China has slowed down, industrial supply has gradually recovered, and logistics problems have gradually eased. The State Council of China has also continued to implement relevant policies to stabilize growth. The price is expected to rebound, which will simultaneously drive the rebound of export prices.

In addition, the China National Development and Reform Commission requires verification of crude steel production reduction assessment, continuous implementation of total control, and the direction of supply monitoring reform remains unchanged. The phenomenon of low-priced steel exports is expected to gradually improve, which is conducive to the steady development of the Asian steel market in the second half of the year, and steel prices are expected to increase. Rising month by month.

From the perspective of the rest of the market, although it is also affected by international political and economic turmoil, inflation and interest rate hikes, and seasonal demand weakening, the manufacturing PMIs of Europe, America, Japan, South Korea, India and ASEAN are still expanding, and steel demand is still stable. Coupled with the release of rigid demand driven by the infrastructure projects of various countries, the long-term upward pattern of the international steel market has not changed.


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