China steel market to be gradually optimistic in long term, but to be still at low level in short term
Time:Mon, 04 Jul 2022 09:40:34 +0800
keywords :
In the week ending July 1, most of China's steel prices in each region rebounded compared to the previous week. In terms of the raw material market, the prices of iron ore increased by RMB 20/ton, and coke prices kept flat.
On June 29, China's authority approved issuing financial bonds to raise RMB 300 billion. It will be applied to some projects, including infrastructure. Furthermore, the funds could also speed up construction. Therefore, the low demand for steel in China might improve.
In terms of supply, most of the China steel mills faced a deficit, so they were forced to reduce production and do mechanism maintenance instead. At the same time, it would impact raw material prices as well.
In terms of demand, with speeding up construction by stimulated policies, China's steel demands might be expected to increase gradually in the long term. However, supply and demand for steel in China will keep at a low level in the short term.
