High inventory is not the only core factor restricting the rise in steel prices

With the gradual stabilization of the domestic epidemic situation and the emergence of peaks in some international countries, the domestic and foreign capital markets, related trade links, and production links have gradually recovered. The contradiction between supply and demand in the steel market is expected to gradually improve in the second quarter. Steel prices are expected to stabilize and rebound in April.5 The steel price rose in a tangled month, and the steel price in June is expected to reach a high point in the first half of the year, and the profits of steel mills will increase slightly. Iron ore prices are expected to fluctuate widely, and coal coke prices fluctuate in April and May. There is a possibility of a callback in June. Scrap and alloy rebounded slightly following the changes in thread trends, and cost support has gradually increased. Focus on the later stage: global epidemic control, macro policy implementation, and downstream demand start-up.

The situation of domestic epidemic situation is further consolidated, foreign epidemic situation is expected to be basically controlled, and economic activities are gradually restored. The oil war has ended in stages, global supply, exports, consumption, and demand have gradually recovered, and the economy has gradually come out of the downturn, especially in China's economic recovery. In response to the downward pressure on the economy, a new wave of interest rate cuts has begun in the world, and more than 44 countries have introduced policies to support the economy. Following the implementation of zero interest rates, unlimited QE, and large-scale fiscal stimulus of US $ 2 trillion, the Fed announced an additional US $ 2.3 trillion in loans to support economic development. Many countries in the United States and Europe are preparing to resume production in stages.

Steady word current. 2020 is the general election year for the United States, France, South Korea and other countries, and it is also a political year for China to complete the construction of a moderately prosperous society and the "Thirteenth Five-Year Plan" goal. All countries must increase economic stimulus to make up for the loss in the first quarter..