On June 22, steel traders such as Liang taigeng, general manager of Shanghai Hualei Enterprise Development Co., Ltd., Ren Qingping, chairman of Shanghai wubo steel structure materials Co., Ltd., and Li Zhongshuang, general manager of Shanghai Ruikun metal materials Co., Ltd., said in an interview that with the gradual emergence of the regulatory effect of "ensuring supply and stabilizing price", the steel market will run smoothly in the future and the steel price will return to a reasonable level.

In June, the sharp fluctuation trend of steel market has been curbed to a certain extent, and some varieties with deep price drop at the end of may also have a certain degree of recovery. In the first trading week of June (from June 1 to June 4), the price of Zhongtian Steel's 8 mm diameter high-speed wire rod increased by 240 yuan / ton, and the price of 20 mm diameter rebar increased by 240 yuan / ton; The price of 14 mm ~ 20 mm plate produced by Nangang increased by 100 yuan / ton; The price of Angang's 5.5mm hot rolled coil increased by 140 yuan / ton, while that of 1.0mm cold rolled coil increased by 190 yuan / ton. On the whole, the steel price in Shanghai market has basically recovered to the normal level.

According to the statistics of steel traders, since the second quarter of this year, the national development and Reform Commission and the local development and Reform Commission have conducted at least seven surveys and discussions on the issue of commodity prices, and listened to the opinions and suggestions of representatives from all walks of life at least nine times on the topic of carbon peak and carbon neutralization. The executive meeting of the State Council deployed to do a good job in "ensuring supply and stabilizing price" of bulk commodities to maintain stable economic operation. The Ministry of industry and information technology said that it would cooperate with relevant departments to resolutely crack down on hoarding, malicious speculation, bid up prices and other behaviors... Steel traders believe that under the control of "ensuring supply and stabilizing prices", it is difficult for the steel market to stage a "roller coaster" market again.

At present, the production and sales situation of construction machinery industry is in recession. After the production and sales of construction machinery began to decline in April, it continued to decline in May. According to the data of China Construction Machinery Industry Association, 27220 excavators of various types were sold in China in May, a year-on-year decrease of 14.3%, showing negative growth for the first time since March 2020. Among them, domestic sales of 22070 units, a year-on-year decrease of 25.2%. Steel traders believe that this is due to the sharp rise of steel prices in the early stage, which leads to the rise of construction machinery prices, which has a certain impact on downstream purchasing enthusiasm, and the demand for steel is also reduced. However, with the implementation of the regulation of "ensuring supply and stabilizing price", the demand of downstream enterprises suppressed by the sharp rise of steel price in the early stage will be released.

Steel traders believe that in the context of carbon peak and carbon neutralization, the steel industry will continue to control production capacity and reduce production. In addition, after the high price of steel fell, the profits of steel enterprises shrank significantly, and the enthusiasm of production was restrained to a certain extent. Some steel enterprises choose to carry out routine maintenance in June. Some steel enterprises plan to overhaul a hot rolling production line on June 30, some postpone the overhaul originally scheduled for May to June 7-21, and some will overhaul a cold rolling production line for a period of 10 days from June 16... Factors such as environmental protection, limited production and overhaul of steel enterprises will lead to the decline of steel production in the later stage, thus easing the contradiction between market supply and demand, Promote the stable operation of steel price.

In view of the recent "two-way tariff adjustment to help maintain supply and price stability of bulk commodities" method proposed by the executive meeting of the State Council, steel traders said that the main solution through tax measures is to solve the contradiction between supply and demand, to achieve a relatively balanced supply-demand relationship, and to stabilize expectations, to avoid increasing speculation.

In general, with the implementation of the regulation policy of "ensuring supply and stabilizing price", the steel market will run smoothly and well.