Following yesterday's successful opening, today's steel prices continued to rise. Iron ore price remained strong, rising by 3.16% to support steel prices, and steel billets increased by 3.18 usd/ton to 515.38 usd/ton. Market sentiment rebounded and steel prices rebounded in stages.
Tangshan and Wuan have successively introduced production restriction schemes to support steel prices. At the same time, the fall of steel prices in August has opened the pace of active stop and production restriction in steel mills, and the production restriction is becoming more stringent and the production will be reduced actively. This week's steel output is expected to continue to fall, which will benefit the trend of steel prices.
Trading volume continues to pick up and market demand releases. With the steelmaking price dropping sharply in August, steel trading was at a relatively low level, and September trading volume rebounded.
In conclusion, steel market sentiment has improved and confidence has been restored. On the one hand, the steel price is supported by the cost side, iron ore and steel prices go up simultaneously; on the other hand, the basic supply-demand relationship has further signs of warming up. With the pressure of production restriction and active production reduction in the main production areas, the steel output has a downward trend, and the demand gradually releases with the improvement of weather and the effect of low-cost replenishment. It is expected that the steel prices will continue to rise in the short term.
