Peak season expectations still remain, steel prices in April need to pay attention to the strength of demand support

Looking back at the steel market in March, molten iron production ran at a high level, terminal demand was released steadily, and steel prices as a whole walked out of a volatile upward trend under the boom of supply and demand.

In coming April, on the supply side, raw material prices are high, and high-priced steel mills are not willing to replenish its storage quantity. The profit margin of steel mills is compressed, short-process steel mills have a strong willingness to reduce production, the production rhythm of long-process steel mills is basically stable, and unlimited production plans; On the demand side, April is the peak season for engineering construction, coupled with the improvement of funds in place, steel inventory structure is good, and demand is expected to maintain stable growth.

April is the traditional month of both supply and demand, demand will maintain pulse growth, table demand is still in a high range after the phased peak, steel prices will show a strong running trend. But if demand falls short of expectations, steel mill supply grows rapidly and inventories begin to accumulate, then steel prices may have more room to fall.