Pig iron output about to peak, steel price may retrace down

Ferrous metal prices fell first and then hike last week. At the beginning of last week, the Ministry of Finance announced the issuance arrangements for general government bonds and ultra-long-term special bonds in 2024. In the second half of last week, it was rumored that 12 cities with plans of special refinancing bond issuance will lift the restrictions on construction suspension. Relevant policies of China's acquisition and storage of housing were implemented. Russian senior officials stated that they will significantly increase steel imports from China. The macro news largely boosted market sentiment and ferrous metal market. In spot market, steel prices increased in the second half of last week. Low-price transactions performed well.

This week, pig iron output is about to reach peak. Possible raw material price slip will weaken steel production costs. Steel prices will follow raw material prices this week, and may dip after rising.