Negative feedback on the cost of supply and demand game, the steel market is bottoming out or rebounding weakly

The market prices of major steel products fluctuated and fell. Compared with last week, the rising varieties decreased significantly, the flat varieties slightly decreased, and the falling varieties increased significantly.
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At present, expectations of interest rate hikes in Europe and the United States still exist, bank financial risks may still spill over, and the global economy is still facing the risk of recession. For the steel market, the arrival of large-scale rainfall in the central and eastern regions will have a greater impact on the progress of construction projects, which in turn will affect the rhythm of terminal procurement demand, making the market transactions up and down, and performance varies.
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In the short term, the domestic steel market will show a pattern of “economic recovery process, short-term demand shortage, magnified off-season effect, high supply decline, and external risks still exist”.
From the perspective of the supply side, due to the sharp drop in steel prices again and the increasing pressure of losses, steel mills will struggle to make choices in the cycle of resuming production, reducing production, and resuming production, and the short-term supply side will show a situation of fluctuations and declines.
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From the perspective of demand, due to the arrival of large-scale rainfall in the central and eastern regions, the impact of weather on project construction will become more obvious, and the rhythm of terminal demand is strong, which makes the market transactions up and down. From the perspective of cost, as the price of raw materials is under pressure again, the cost support of the steel market has weakened, which also makes steel prices have room to fall again. It is predicted that this week (2023.5.29-6.2) the domestic steel market will show a situation of oscillating and bottoming out, and some regions or varieties may have a weak rebound in the process of bottoming out.