Cost support and meeting expectations will provide strong support for steel prices in the short term

Published: Jul 8, 2024 15:53

Source: SMM

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Last week, the ferrous metals series saw a "good start" in July, with iron ore performing stronger than other varieties.

Last week, the ferrous metals series saw a "good start" in July, with iron ore performing stronger than other varieties. On the news front, there were rumours that the real estate sector might introduce new economic stimulus policies. The off-season impact on the apparent demand expanded, hindering the upward momentum of steel prices. In the spot market, steel prices rose first and then fell last week, stimulating market sentiment to improve and increasing low-price transactions.

In the short term, July pig iron output remained at a relatively high level. The macro meeting expectations and the rigid demand from steel mills provided strong support for furnace charge prices. However, steel prices face the pressure for further hikes amid weak demand in the off-season. It is expected that short-term profits of steel mills will narrow, and steel prices will fluctuate within a range this week.

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