China steel prices are expected to stop falling and stabilize in the later period

In the near future, the government has successively issued a number of economic stabilization policies and measures to support the non epidemic areas to resume production and work as soon as possible. In the later stage, the supply and demand situation of steel market will be improved, and steel prices are expected to stop falling and stabilize.

First, steel demand is expected to recover gradually in the later stage. The novel coronavirus pneumonia was effectively controlled and the public panic was eased under the firm leadership of the CPC Central Committee and the State Council. Various levels of government have introduced policies and measures such as employment, finance, taxation, finance and transportation, so as to promote the recovery of the non epidemic areas.

Secondly, steel production fell month on month, and the contradiction between market supply and demand is expected to ease.

Finally, the steel inventory has increased significantly, which has great pressure on the later market. As the steel market demand is delayed and the transportation is blocked, the steel inventory has increased more than in previous years. The abnormal increase of steel stock has great pressure on the trend of steel prices in the later period.

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