Will steel prices fall with the rainfall in the south?

With the gradual digestion of the news of Vale’s iron ore shutdown, steel prices were blocked upwards. The steel market quotations were mainly stable on June 9. After the steel market fell in the night, the intraday fluctuations adjusted and finally fell, and the steel market was on the sidelines.

According to the China Construction Machinery Association, in May at the end of the traditional peak season, excavator sales still maintained a good momentum, with sales of 31,700 units, a year-on-year growth rate of 68%, and compared with previous years, usually in March and April each year The peak season also reflects the progress of the industry's upstream and downstream resumption of production. The excavator is usually a barometer of infrastructure investment. With the addition of a new round of major projects and the support of the economy, short-term steel price support is still there.

Judging from the transaction performance of the national steel market in recent days, on the one hand, due to weather factors, recent heavy rains continued in the south, the National Flood Control has launched a flood control level IV emergency response. According to weather forecasts, Jiangnan and South China will continue to Heavy rainfall is not conducive to downstream transactions.

On the other hand, the purchasing mentality is affected by the expected fluctuations in steel prices. After the steel trading volume fell back last week, with iron ore rising on Monday, the bullish mentality brought a brief boost to market transactions, and the trading volume rebounded significantly.