Supply and demand may spiral up during the transition from off-peak season to peak season

The domestic steel market is gradually moving out of the traditional off-season of demand. With the gradual fading of the impact of the Spring Festival holiday and the gradual warming of the weather, a large number of migrant workers are returning home, and the commencement and construction of major projects are gradually returning to normal. However, the market transactions are uneven, and terminal demand is still recovering. On the supply side, there is a trend of gradually increasing strength, and the overall steel market is in a situation of weak demand recovery and gradually increasing supply.

Due to the continuous decline in the prices of major raw materials, the support for production costs has significantly weakened, and steel mills will gradually emerge from losses to achieve profits. This will enhance the willingness of steel mills to release production capacity, thereby promoting a "spiral" upward trend in the domestic steel market's supply and demand relationship. Among them, periodic "mismatches" between supply and demand may occur frequently.