It fell yesterday and rose today! What’s the trend of steel market?

Today’s market fluctuates and strengthens, which is completely opposite to yesterday’s decline. Some spot market prices of threads and hot coils rose slightly by 10-30 yuan, and very few markets dropped slightly, and the average price moved up slightly compared with yesterday.
Why did the market strengthen again?
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In the past two days, the market is still tossing repeatedly, the futures market is restless, and the spot passively changes slightly with the rhythm of the market. From the perspective of steel products, there are no major changes in the fundamentals, and there are not many bright spots in the rhythm of supply and demand, inventory, and transactions. Since June, the average daily crude steel has returned to an increase of more than 3 million tons. Combined with the situation of shrinking profits, the supply side is still under great pressure. In the past two days this week, the market has been greatly affected by data and raw materials. Many people think that the demand is too weak, which is the fundamental factor restricting the rise of the market, but the demand needs to be viewed dialectically.
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Really poor demand?
Demand differentials are relative. Although we have seen a decline in real estate steel, we should also see an increase in new energy steel, prefabricated construction steel, and large infrastructure projects, and even more varieties of steel and an increase in exports. There are bright spots in demand in these areas. Generally speaking, demand is resilient to a certain extent. Bad demand is a relative concept. Basis is not opened, speculative demand is relatively weak, and the average trading volume in the circulation field is lower than last year. These are part of the overall demand, not the overall situation. Incremental demand, including direct supply demand and overseas demand for exports, performed well.
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Judging from the recent market trend, there are insufficient drivers to support the rise and fall of steel prices. With the superimposition of economic data and the impact of the Federal Reserve’s interest rate hike, steel prices still show the characteristics of repeated shocks in the short term. However, the data in the second quarter also reflects the fact that the ring is relatively poor. If the raw material coking coal, coke and iron ore continue to be strong, and the market has high expectations for policies, it is not ruled out that the finished product will fluctuate and strengthen, and the room for recovery on Monday will be restored.