Just! New policy is issued! Steel prices won’t fall!

The macro market continued to boost market expectations and confidence, and the futures market was generally strong. However, the trading logic of the spot market still revolves around the implementation of resumption of production and work and the realization of steel demand expectations. On the whole, it is expected that the steel price will be stable and strong before the holiday, focusing on changes in market trading volume.
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1. The State Council issued a package of policy measures to stabilize the economy
The State Council has issued a package of policies and measures to stabilize the economy, including 33 specific policies and measures in six areas and division of labor arrangements; at the same time, the General Office of the State Council will soon work with relevant parties to conduct special inspections on the situation of stabilizing growth, stabilizing market players and ensuring employment in relevant provinces to ensure that Effective implementation and implementation of policies. It can be said that the stabilization of the economy this time is unprecedented, and the implementation of the “rescue” plan is expected to accelerate, continue to strongly boost market confidence and expectations, and benefit steel prices in the medium and long term.
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2. Bureau of Statistics: Both production and demand recovered in May, and the manufacturing PMI rose to 49.6%
The boom in the manufacturing industry in May stopped falling and rebounded. On the one hand, it showed that the macroeconomic stabilization policies and measures were gradually implemented, and the effect was beginning to show; With the improvement, the resumption of production and work in the downstream is carried out in an orderly manner, the economy is expected to recover faster, and the demand for steel that was suppressed in the early stage is expected to be gradually released, which will benefit steel prices in the medium and long term.
In terms of macroeconomics, stabilizing the general economic market meeting boosted market expectations and confidence, and the macroeconomic recovery may accelerate. Today, the futures market is generally strong. However, it will take time for the policy to be transmitted downstream, superimposed on the flood season in the south and the summer harvest in the north. At present, the trading logic of the spot market still revolves around the implementation of resumption of production and work and the realization of steel demand expectations. The steel price rose slightly today. It is expected that the steel price will be stable and strong before the holiday, and the focus will be on changes in market trading volume.
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