Analysis of China’s steel price trend after May Day: The main reasons for the surge in steel prices after the holiday:
1. The speech of major Chinese senior leaders on May 1, 2021: “Carbon peaking and carbon neutrality” is a solemn commitment made by China to the world. Projects with high energy consumption and high emissions that do not meet the requirements must be resolutely taken. Next, this is a broad and profound economic and social reform. The weight of these few words is very heavy, especially for the steel industry, it is no less than the reform of the “Blue Sky and White Cloud Defending War” carried out in the past few years, so the price of steel has risen rapidly and rapidly.
2. With the current global commodity inflation, the US balance sheet has expanded by about US$5 trillion. Now the price of hot coils in the US has exceeded RMB 10,000 and the price of threaded products is more than 9,000 yuan. The price of iron ore will soon be Break through 200 US dollars. Under the current global inflationary pattern, the price of steel is not easy to fall, but will continue to rise.
Combining the above two reasons, the price after the holiday will undoubtedly rise. As for the height of the rise, we don’t want to guess for the time being. Personally, I think it must rise to a historic high. In this carbon peak and global inflation Under this background, steel prices will still hit a record high. The current poor downstream demand and low acceptance are simply not worth mentioning in the face of the above two reasons, and cannot stop the trend of rising steel prices at all. It is expected that the change in steel prices can only happen when the monetary policy changes.