Production resumption keep missing expectations, short-term steel prices will swing widely

Ferrous metal prices stayed depressed last week. No expected positive policies were released from the Two Sessions. Restart of steel mills kept missing expectations. Some steel mills in some areas issued notices of discretionary production cuts. Customs data revealed a rise in steel exports from China by 32.6% YoY from January to February 2024. Steel exports may still show resilience in March. In spot market, rigid terminal demand mildly added transactions.
Looking forward, macro sentiment will fade after the Two Sessions. Supply condition and slow restart of BFs will put raw material prices under pressure. Ferrous metal prices may swing widely this week.