Rare! Futures Steel fell 295yuan! Steel prices plummeted 370yuan! Iron ore is down!

Consistent with the first drop this week predicted last week, steel prices fell sharply on June 20th. The black futures fell frighteningly, and the decline of futures steel hit a two-year low; the spot market also fell below the historical record. The characteristics of the off-season market are prominent, and the demand is extremely poor. Where is the road for the steel market?
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What factors affect the price of steel?
1. On June 20th, black futures fell sharply, and raw materials fell by more than 10%
Recently, the black-based futures varieties continued to drop sharply, mainly due to the poor terminal demand, which also led to a sharp decline in spot market prices. At the same time, the decline in the price of raw materials dragged down the finished product, the decline in the price of the finished product suppressed the demand for raw materials and suppressed the price of raw materials.
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2. The market lacks confidence in future demand, and SC crude oil falls by more than 5%
Analyst’s point of view: The price of crude oil generally directly affects the price of energy products, and the price of crude oil downstream industries such as plastics, pp, methanol, etc., has little direct impact on the thread, but may drive the overall index lower, thereby pulling down the black thread such as thread. The price is negative for the spot market steel price.
In March and June, the number of steel mills to reduce production and overhaul gradually increased
With the recent continuous decline in steel prices, the steel market has obvious characteristics in the off-season. Poor demand, superimposed high output and inventory of steel companies, and huge pressure on the supply side have prompted steel companies to increase production reduction and maintenance efforts. On the one hand, this may be a measure of steel companies to reduce production and protect prices, and the willingness of subsequent steel companies to support prices may increase.
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On June 20th, both futures and spot steel fell to a record low, which is a bit confusing. The reason is that in addition to the core contradiction, the supply is strong and weak, and the second is driven by the plunge in raw materials. With the falling limit of iron ore, the room for further decline in steel prices seems to have opened up. If you ask where is the low? “Low” underfoot…