Restart of BFs will boost raw material demand, steel prices may stay range-bound before the Labour Day holiday

Published: Apr 29, 2024 17:18

Source: SMM

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Ferrous metal market moved sideways last week.

Ferrous metal market moved sideways last week. Raw materials prices were stronger than steel prices. Recently, there were rumours that China will focus on inspecting HRC exports, fuelling wait-and-see mood among players. Subsequently, the NDRC and the Ministry of Finance (China) completed the screening of local government special bond projects in 2024. In the second half of last week, a significant rise in pig iron output amid previous maintenance of BFs improved market sentiment. In spot market, steel prices fluctuated narrowly last week. Replenishing demand appeared modest before the Labour Day holiday.

Looking at this week, restart of BFs will boost raw material prices, with coke prices likely rising. Moreover, there will be macro-positive expectations. Steel prices may still hike somewhat this week, but may retrace down in the short run, owing to the end of pre-holiday restocking of end-users.

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