In 2018, factors such as environmental protection and limited production, downward pressure on the macro economy, and trade friction have become important external factors affecting the fluctuation of the steel market. At the beginning of 2018, the supply and demand remained relatively balanced in the steel market due to environmentally limited production and shrinking demand. After the Spring Festival in March, steel stocks accumulated, but the demand release was slow. The steel price suffered the first “Waterloo” in 2018. By the end of March, the Shanghai φ20mm rebar market price had dropped to around 3,500 yuan/ton. Since then, market demand has begun to release, and some provinces have released a series of environmentally-friendly production-restriction programs in the non-heating season. Steel prices have quickly repaired the previous declines. Since then, steel prices have risen slowly due to the increasing environmental expectations. After the National Day holiday, the market spread, the environmental protection and production limit during the heating period is no longer “one size fits all”. The local governments are planning to collapse due to the city’s policy, and the market’s previously accumulated environmental protection and production expectations are beginning to collapse, combined with commodity futures under the shadow of trade friction. The global bond market and the stock market fell, and in the third quarter, China's GDP growth rate and various macro indicators fell short of expectations. The market's pessimistic expectations were strengthened, affecting the steel market. Starting in late October, steel prices began to fall sharply, falling within a month. The range is more than 1,000 yuan / ton, but still higher than the lowest value in March. After entering December, due to many factors, the steel market has been adjusted back, but the growth momentum is insufficient.

Overall, the price range of steel prices in 2018 was 1,100 yuan / ton, the lowest point appeared at the end of March, and the highest point appeared in early November, basically maintaining a reasonable fluctuation range. As of December 28, 2018, the price of Shanghai φ20 mm III grade rebar was 3,860 yuan / ton, compared with the price at the beginning of 2018, the gap was around 200 yuan / ton. In addition, the price fluctuations of raw materials such as iron ore and coking coal coke in 2018 are basically the same as those of steel prices, and they are basically kept in a certain range of fluctuations. Steel companies can maintain a certain profit margin throughout the year.