The current situation of China’s domestic steel market this week: Due to the increasing downward pressure on the domestic economy and the high temperature and off-season, the market sentiment was cautious this week, the enthusiasm for downstream purchases was low, and the demand for steel continued to be weak.
In the short term, the supply and demand of the steel market is in a weak balance, the stock removal of steel mills is not smooth, the merchants cut prices to remove the stock, and the steel price may fluctuate and weaken. From August 24th, the high temperature in the south will be significantly relieved, and the downstream construction sites may be expected to speed up the construction progress. Once the demand improves, there is still room for steel prices to rebound.
In addition, the abnormally high temperature across the country continued, and the demand for electricity increased greatly. In addition, due to the shortage of water conservancy power generation due to drought, many provinces and cities successively introduced power curtailment policies. This may have a certain impact on the production of steel mills and steel prices.