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Steel materials: how much room for adjustment in 2021

Posted:2021-05-12 10:40:39

It is expected that this year, with the adjustment of steel materials supply side, China's steel market will present a pattern of high cost, high steel price and improved steel mill profits.

At present, the supply side adjustment expectation has not been fully implemented, while the downstream demand has slowed down seasonally, and the overseas epidemic has not yet subsided. Market sentiment and logic are confused. Steel materials prices in the supply contraction is expected to rise, but the actual output did not show signs of slowing down.

Driven by high steel materials prices and strong demand, iron ore prices are also rising all the way. Therefore, in the process of rebalancing the iron ore and steel industry chain this year, we believe that grasping the main line of steel mill profits will help to better judge the market trend this year.