The domestic market steel prices have risen and fallen

In May, the domestic market is still in the peak season of steel demand. Affected by the accelerated release of steel production capacity, the domestic steel market showed an oversupply situation, the market is expected to fall, and steel prices have turned from rising to falling. In June, the price of steel continued to decline in the first two weeks, and it showed a slight fluctuation in the later period. It is expected to continue to rise in July.

At the end of May, the prices of the eight major steel products monitored by the Iron and Steel Association declined, among which: wire, steel and angle steel prices fell by RMB 34/ton, RMB 76/ton and RMB 12/ton, respectively; medium and heavy plate, hot rolled coil The prices of cold-rolled sheet and galvanized sheet decreased by RMB 60/ton, RMB 77/ton, RMB 131/ton and RMB 17/ton, respectively; the price of hot-rolled seamless pipe decreased by RMB 77/ton.

According to the monitoring of the Iron and Steel Association, in May, the price indices of the six major regional markets of CSPI were all downgraded, including: the southwest region experienced a large decline, down 1.57% from the previous month; the northeast region saw a smaller decline, down 0.85% from the previous month; North China, East China, The price indices of Central South and Northwest China decreased by 1.24%, 1.43%, 1.39% and 2.78%, respectively.

the price of steel in the international market has changed from rising to falling

In May, the CRU International Steel Composite Price Index was 170.1 points, a decrease of 4.8 points from the previous month, a decrease of 2.7%, which was down from the previous year. Compared with the same period of last year, it decreased by 23.9 points, a decrease of 12.3%.

Third： The analysis of the changes in steel prices in the domestic market

In May, the domestic market was still in the peak season of steel demand, but due to the accelerated release of steel production capacity, the steel market showed an oversupply situation, and steel prices went up and down.

Fourth, The analysis of the price trend of the steel market in the later period

As the country's steady growth policy measures continue to exert strength, steel demand is expected to remain stable in the later period. Affected by the high level of steel production capacity release, the domestic market supply side grows faster, and the steel prices in the later period are difficult to rebound, and will show a slight fluctuation.

The main issues that need to be addressed in the later market:

First, the accelerated release of steel production capacity is not conducive to the balance of supply and demand in the market. In May, the national average daily output of crude steel reached 2,874,300 tons, an increase of 1.4% from the previous month, a record high. Due to the accelerated release of steel production capacity, it will put a lot of pressure on the balance of supply and demand in the later market. Iron and steel enterprises should consciously maintain the results of production capacity and promote the smooth operation of the industry.

Second, steel exports fell year-on-year, and the international market still faces uncertainties in the later period. In May, the country’s steel exports were 5.74 million tons, down 1.14 million tons year-on-year, a decrease of 16.6%. Due to the escalating trade friction between China and the United States, the international market is facing uncertain factors. Iron and steel enterprises should strive to expand exports and maintain international market share.

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