What are the reasons for the increase in steel prices

At the end of March, the long steel price index was 142.76 points, up 5.78% on a month on month basis, and the steel plate price index was 141.83 points, up 8.13% on a month on month basis. As of April 8, the national social stock of the five major steel products has reached 18.84 million tons, which has dropped for five consecutive weeks.

There are four main reasons for the rise in steel prices. The first is the mismatch of global supply of resources, which promotes the rise of raw material prices. Second, from the demand side of steel, the demand of real estate is relatively stable, which maintains the basic stability of the steel prices.

Third, the prosperity of manufacturing industry is relatively high, which has a certain boost for the marginal demand of the whole steel. Fourth, since the beginning of this year, China has put forward the policy of reducing production. The market expects that under the promotion of this policy, the supply of steel will shrink to a certain extent.