Later steel prices will be pulled low

According to an analysis released on Monday by the China Iron and Steel Association, with the decline in domestic steel production, the oversupply situation has eased, and the steel prices have approached the bottom, and the latter will show low volatility.

China Steel Association said that since the beginning of the second quarter, the demand situation in the steel market has improved, but the growth in demand for the major steel industry has been lower than expected. Affected by the high level of steel production, the contradiction between supply and demand in the market has intensified.

At the end of May, the prices of the eight steel products monitored by the China Steel Association continued to decline, and the decline has increased. China Iron and Steel Association CSPI steel comprehensive price index at the end of the month was 101.83 points, down 3.92 points from the end of April, a decrease of 3.71%, an increase of 2.50 percentage points from the previous month. Up to 6

In the second week of the month, the index fell below 100 points for the first time in a year, the lowest since June 2009.

The China Iron and Steel Association said that as steel production still maintains a high level, the oversupply situation in the market will continue in the later period. In addition, due to the increase in trade friction, China's steel exports will be more difficult, and iron ore prices still have room for decline. Therefore, the post-market steel price will show a low volatility trend.

The Shanghai ** Exchange rebar closed up nearly 2% on Monday. Analysts pointed out that the main reason for the spot price increase of Tangshan billet on the weekend. However, due to the fact that the demand side is not realistic and the quality is good, the rebound may not be sustainable.