SunSirs: National Development and Reform Commission: Survey Shows Weak Expectations for the Steel Market in May

According to the Price Monitoring Center of the National Development and Reform Commission, according to a survey of important steel wholesale markets in China, the expected sales price index and purchase price index of the steel wholesale market in May were 32.2% and 33.5%, respectively, a decrease of 33.6 and 32.9 percentage points compared to the previous month, both below the 50% cutoff line. Overall, steel prices will be weak in May. The main reasons for the sustained weakening of steel prices in April were the high supply, lower demand than expected, and weakened cost support. Due to the lack of significant improvement in downstream demand, market panic has intensified and expectations for May have become more cautious. At present, the increase in losses for steel mills may force them to undergo maintenance, halt production, and provide some support for steel prices in May; However, the pace of recovery in the real estate market is slow, and the degree of improvement in steel demand is limited. It is expected that the steel market will maintain a volatile and weak trend in May.

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