Steel Prices are Expected to Continue Fluctuating Rangebound this Week

Last week, the ferrous metals series prices first declined and then rose. During the Dragon Boat Festival holiday, overseas market of some varieties fluctuated significantly due to the non-farm payrolls exceeding expectations. During the week, the second round of coke price cuts was implemented. Both US May CPI and core CPI growth rates were lower than expected, leading to adjustments in market expectations of interest rate cuts. In the spot market, steel prices ran weak at first and then strong last week, with decent purchase demand at low prices in many regions and a cooling of speculative sentiment.

In the short term, according to the SMM survey, pig iron output is expected to increase this week, leaving limited room for price adjustments on the raw material side. As steel fundamental imbalance slowly aggravates, the prices lack clear drivers. It is expected that steel prices will continue to fluctuate within a range this week.