Steel market will not show much improvement in August

In July, the steel market experienced a dive-like decline, followed by an oversold bounce. As a roller coaster-type market, businesses are also eye-opening. In the second week of August, the steel price currently remains in consolidation, with futures and spot markets moving in opposite directions.

Some steel traders stated that the steel market in August will not be like that in July. The sharp, rapid and sharp drop in steel prices that fell by more than one hundred yuan during a single week will not be reproduced, and the “oversold bounce” market will not be ruled out. Some operators said that the current steel price has entered the “bottoming period” and is in the bottom area. There is no room for a deep drop. If it does not fall, it will stabilize and the stability will increase. As some traders said, “The price of steel is falling, not terrible, and terrible is not bottoming out; only bottoming out can bottom out.” This is an ups and downs complex for steel traders, and it is also the expectation and expectation of many businesses. Steel prices stabilized and rebounded in August.

So, can steel traders' expectations be realized? According to industry insiders' analysis, according to the current supply and demand contradictions and operating conditions in the steel market, the entire steel market in August will not show much improvement. The bull market that “the market is quickly picking up and prices have risen sharply” may not be apparent. However, the panic-stricken, sharp drop in prices that occurred in July will not be reproduced, it is likely to consolidate at the bottom of the region, perhaps return to a reasonable price, after a period of consolidation, there may be a wave of rising prices in September. So, August is the stable period of steel prices in the bottom region.

Low-demand, low-supply, low-cost and high-cost “three lows and one high” will be the basic features of the domestic steel market in the second half of the year. It is expected that steel prices will recover in August and September. The main reason is that the series of “steady growth” policies and measures promulgated by the government in the second half of the year have gradually taken effect, the domestic market demand is expected to rebound, private investment is encouraged, small and micro enterprises are supported, the supply of funds is improved, etc. The implementation of these policies is also It is conducive to the release of steel demand from downstream industries. In addition, the current steel market price is in the bottom area, and there is little room for further declines in raw material market prices. To a certain extent, it supports the stabilization of the steel market price in the second half of the year. In view of the existence of these factors, after entering July, the steel market prices fell sharply, which is conducive to breaking the boring operation of the domestic steel market. With the rapid and rapid decline in domestic steel prices in July and the completion of steel mill contracts, it is expected that the domestic steel market will recover in August and September.