HENSON news-China's steel price expected to be gradually strong in short termï¼?
The reoccurrence of Covid-19 and economic pressure made demands for China's black series low, and the supply of iron ore was lower than the expectation.
Recently, China's coke enterprises have increased their prices, and downstream buyers accepted the rising prices. Many factors might impact the increased prices.
First, demand for finished steel from downstream buyers kept stable, which made steel prices rise, further making steel mills' profits recover. Second, the utilization rate of the blast furnace grew. Third, most coal enterprises faced a deficit, so they restricted their production. Last, with the expectation of increasing coke prices, speculators entered the market and further put coke supply under pressure.
Rising steel demand and supply, gradually decreasing steel inventory, and loosening China's steel policies will make steel prices be optimistic in one to two months
