The main reasons for the strong performance of the steel market in the first half of April were:

First, the continuously published macroeconomic data showed that the economic growth in the first quarter was significantly better than expected, and the government's early stimulus policies began to play a role, and the market mentality improved significantly. Steel social inventories continued to fall sharply, indicating that terminal demand is accelerating.

Secondly, with regard to the expected increase in production of Brazilian mines, Vale announced the annual production plan data, Australia's Hurricane Rio Tinto and BHP Billiton have declared force majeure, and the price of the mine is bullish;

Thirdly, the VAT exemption was implemented from April 1st, and the transactions suppressed at the end of March were concentrated and the market transactions were hot, which pushed the steel price up.

In the second half of April, the steel market entered an adjustment, mainly due to:

First, the price rises too fast in the early period, and the market needs to be adjusted and trimmed. 

Secondly, the Brazilian government agrees to the resumption of the Valutu mine in Vale, which has an annual production capacity of 30 million tons, which plays an important role in shutting down the mine. A sharp advance, confidence in the bears is a big setback. 

More importantly, on the second day after the release of macroeconomic data, the Political Bureau of the Central Committee held an economic work conference, showing that the guiding ideology of the government's economic work has shifted from achieving stable growth in the short term to a long-term structural transformation.