Since the mid and late April, either price of stock or the futures has been increasing steadily. All the steel factories raised their prices. Up till now, the price has been risen more than 400 yuan.
COVID-19 was under control basically in China from the beginning of April, the resumption of work and production accelerated everywhere as well as logistics. Therefore, the steel price appeared the trend of shock recovery with these phenomena. What’s more, with the anticipation of the two sessions and the stimulation of environmental protection production limitation, there was a fast rise of steel price at mid May. But after the two sessions finished, the policy did not achieve the desired effect, so prices fell back after a significant rise.
Frankly speaking, the change of price is inseparable from the pull of demand. Under the influence of the COVID-19, in order to shorten the construction period, the major enterprises are speeding up the construction. When the peak season crashed the period of catching up the work, making the trading volume of national building materials trade reach the highest level in history, steel price level is no exception as well,during the peak season of double demand.
But as parts of China enter the rainy season in June, steel demand will be affected. After all, the rising space of steel market is limited, and it is easy to generate new fluctuations.