Steel prices in China changed a lot in May, they skyrocketed and even broke the highest record in 2008, and then fell sharply after mid-May.
The main reasons are classified as follows:
First, under the influence of the epidemic, the main economies of the world have implemented quantitative easing (QE). Several international financial institutions used the commodity futures market for short-term speculation, which led to short-term increases in steel prices.
Second, the global economy has recovered this year and steel demand has returned to normal. The third reason was that the difference in prices between domestic and foreign countries was large, which led to an increase in steel prices. Fourth, the Chinese government’s carbon neutrality policy has influenced the market’s supply expectations. The latter was higher and more expensive than raw materials.
In this situation, with the rise and fall of steel prices, many companies are suffering losses, and many are concerned that consumers will eventually have to pay for the uncertainty in steel prices.
In the long term, it is necessary to optimize the supply structure both in the domestic and foreign markets.