Forecast of China steel market in May

In May, China's steel market is still facing many pressures. First, the output of blast furnace and electric furnace is still a certain gap from last year's high point. Driven by profit, there is still obvious room for improvement at the supply side, and the weekly output of screw steel is likely to exceed last year's high point. Second, the steel demand is difficult to maintain high-level operation. In May, the steel demand is expected to fall back to a certain extent, and the speed of steel inventory removal will slow down significantly; Third, the impact of imported low-cost resources, import resources are mainly billets and hr coils; fourth, the impact of overseas epidemic on steel exports will gradually appear, and the impact of steel plates will be greater.

In May, there is still downward pressure on the steel price as a whole, but at present, the steel profit is not very considerable, and the cost of raw materials is still supported. It is expected that the steel price will not fall much. From the perspective of rhythm, the steel price in the first ten days of May is relatively firm, and the pressure will be more significant in the middle and last ten days; from the perspective of variety, the pressure of steel plate will be greater.