Demand has soared and inventories have fallen. Will steel prices rise in May?

The current domestic epidemic situation has been basically controlled. Various departments have issued a series of policies and measures to promote the comprehensive resumption of production and production in all walks of life in the country. The National Standing Committee has also deployed new infrastructure to speed up, thereby promoting the upgrading of industry and consumption, making the steel market gradually develop. But at the same time, the process of resuming production of steel mills is also accelerating, and steel production is steadily picking up. In the later stage, the steel market will face a situation where supply and demand will rise at the same time, but the volume of downstream demand is unstable. The price trend of the steel market is in a dilemma, and the overall steel market is still difficult to correct the weak situation. Taken together, the steel market will continue to show a slight shock after the holiday.

On the last trading day of April, the steel futures rose, and there was a tail market! Both the signs of a slowdown in the overseas epidemic and the upcoming two meetings in China have boosted confidence in the market. And can the acceleration of the destocking and the fall in production in the last week of April support the continued upward price of steel?

Since April, the domestic steel market has slowed down. The apparent demand has reached the peak season level, and it reached a new high in the last week. The apparent demand for the five major varieties was 12.22 million tons. It is worth mentioning that the output has turned from an increase to a decline, with a decline of 80,000 tons, which has boosted market confidence, and steel futures have risen, which has led to an improvement in steel spot transactions.

In the short term, while the manufacturing industry is slowly recovering, as the overseas epidemic slows, it will boost confidence in the market, but the overall demand for steel in the first half of the year will be limited.