Steel prices may rebound, but the upside room will be limited

Ferrous metal prices dipped last week. At the beginning of last week, a delay in restart of some steel mills blunted market sentiment, largely pushing down iron ore prices. In the middle of last week, there was the fifth round of coke price cuts, and a sixth round of price cuts may take place. Ferrous metal still in a downturn. Players were more pessimistic in spot market.
Looking ahead, according to the latest SMM survey, pig iron output may grow this week. In addition, ferrous metal prices experienced a sharp decline. Therefore, steel prices may rebound this week, but to a limited extent amid pessimistic outlook for terminal demand. No pick-up of daily construction steel transactions and expectation of a sixth round of coke price cuts will explain for the limited rise.