company news about Where will the domestic steel market go in the second half of the year?

In the first half of this year, the domestic steel market as a whole was in a game of steady growth and strong expectations and low demand and weak reality. At the same time, due to the strong support of high costs, domestic steel prices continued to rise under the combined influence of strong expectations and high costs. In the face of the Fed's aggressive interest rate hikes and the reality of low demand, domestic steel prices began to fluctuate and decline in mid-April, and the sharp decline in finished products also led to a pullback on the raw material side. Overall, the domestic steel market experienced a strong decline in the first half of the year. Expectations drive highs to rush up, weak reality drags down sharply, and cost support weakens and shocks bottom.

Entering the second half of the year, the domestic steel market will continue to face the impact of various factors such as the increasing pressure from the global interest rate hike and the prolonged period of expected stable growth and strong domestic growth. From the perspective of supply, at present, due to the sharp drop in steel prices, domestic iron and steel production enterprises have suffered significant losses, thus forcing steel mills to gradually increase the intensity of maintenance and production reduction. Driven by this, the production rhythm of domestic large and medium-sized iron and steel enterprises was relatively less affected. Considering that the domestic economy will gradually recover in the second half of the year, domestic iron and steel production enterprises may advance the production cycle to ensure the gradual return of steel demand in the future, but the production capacity release of short-process iron and steel production enterprises will be significantly suppressed.

From the perspective of demand, the policy of stabilizing growth has entered the stage of intensive introduction, and will accelerate the implementation stage. The domestic economy will support the economic recovery from the aspects of enhancing the consumption of residents and enterprises and expanding effective investment. Therefore, in the second half of the year, the domestic steel market may face the reality of weak demand and gradually strengthen. From the perspective of expectations, the recovery of demand is the general trend, but it will take time to verify; from a practical perspective, when the domestic steel market gradually moves out of the traditional off-season of demand, and at the same time, the expectation of stable growth and strong growth is accelerated, and the demand side of the domestic steel market may There will be a short-term concentrated "explosive period", so the demand side of the domestic steel market in the second half of the year will show a situation of short-term weakness and long-term strength.

From the perspective of cost, due to the sharp drop in steel prices, the raw material side has also been significantly adjusted. However, due to the gradual warming of the domestic steel market demand side and the continuous implementation of the "dual carbon" strategy, the raw material side of the domestic steel market will appear. Moderate adjustment in the short-term, and a trend of reasonable return in the long-term.

On the whole, in the second half of the year, the domestic steel market will face a global interest rate hike, a game of steady domestic growth, a shrinking supply side, a game of low profits for steel companies, a weakening of strong expectations, a weaker game, a stronger reality, and overall warmer demand, a game of downstream structural adjustment and other factors. Impact. As far as the domestic steel market trend is concerned, in the second half of this year, the domestic steel market will be driven by strong expectations to accelerate the landing. Reasonable return, so the domestic steel market in the second half of the year will show a situation of shock and recovery, but under the influence of various factors, the probability of the market rising sharply unilaterally is small.