The domestic steel market will consolidate in the short term

At present, China's domestic steel market is still in the traditional off-season demand, with the alternation of high temperature and rainy season in the northern region, while the southern region is also affected by more rainfall than in previous years, so the procurement of construction sites will be more limited, and the downstream demand for steel plate and strip will start to weaken significantly.

At the same time, the policy of provinces and cities to actually reduce steel output in the second half of the year will also enter the implementation stage. The policy pressure plus the effect of profit contraction will promote the contraction of the supply side and make the steel market rise again. However, the demand in the off-season is still weak, which will suppress the rising space of the steel market, The domestic steel market will be in the process of seeking a new balance between supply and demand. In the short term, the domestic steel market will be shaken and consolidated.

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