Fall down! The two departments speak again! Steel prices continue to fall!

Unsurprisingly, today’s spot market prices stabilized and adjusted downwards. In fact, the continuous rise in the previous period has finally stopped rising. It can be said that the rise without demand support is unsustainable. In the transitional stage of waiting for the release of demand and the realization of expectations, it is difficult for steel prices to fluctuate greatly. It is expected that steel prices will run steadily and weakly tomorrow.
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1. Coke started the first round of increase
The rise of coke enterprises will form a significant support for steel prices from the cost side once they are implemented. In order to ensure profits, steel mills will definitely support prices and push steel prices upward.
2. China Iron and Steel Association: In late May, the daily crude steel output of key steel enterprises was 2.3193 million tons
The daily output of crude steel maintains a high level and a slight growth, which means that the supply of steel continues to increase, which puts a certain pressure on the supply side and has a certain suppressing effect on steel prices. At the same time, when the inventory is at a high level, the decline in the inventory is not large, which also forms a certain pressure on the steel price. Overall, the current supply side is under great pressure, and in the context of weak demand, it is difficult for steel prices to increase significantly.
3. Two departments: further promote the participation of new energy storage in the power market and dispatch application
If the new type of energy storage participates in the power market, it will supplement the supply of the power market, ease the current situation of high electricity prices and tight power supply, and indirectly disturb the demand for coal to a certain extent, restraining the rise in coal prices to a certain extent. From a perspective, the restrained coal price will be negative for steel prices.
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Overall, the recovery of demand and the realization of expectations have become the pain points of the current market and the core reason for market participants to wait and see. From this perspective, steel prices are generally stable. However, considering that due to the high temperature in the north and the rainfall in the south recently, and the pattern of strong and weak supply of steel fundamentals is temporarily difficult to change, it is expected that the steel price will be stable and weak in the short term.
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