Forecast: Higher raw material prices and positive macro policies will make a rally in steel prices lingering

Ferrous metal prices rebounded last week. In the beginning of last week, data from the National Bureau of Statistics showed that the national economy was off to a good start. In the middle of last week, the NDRC stated that it would promote the construction of all additional government bond issuance projects before the end of June this year, significantly improving market sentiment. The first round of coke price gains was fully implemented. In the second half of last week, market rumours emerged that Biden was seeking to impose higher tariffs on Chinese steel and aluminium to support US companies, but it had limited impact on market sentiment. Spot steel prices kept hiking last week. Good destocking of steel took place. Trading sentiment picked up further.
Looking at this week, the second round of coke price uptick in some areas and positive macro policies may enable steel prices to keep being stable-to-strong this week. however, given restocking before Labour Day holiday, steel prices may retrace down after surging around the holiday.