At present, due to the rising stagflation risk of the world economy, the surging tide of global interest rate hikes, the obvious increase of external uncertainties, the interweaving of demand contraction and supply shocks, the superposition of structural contradictions and cyclical problems, and the unstable foundation for the sustained recovery of the domestic economy. In the second half of the year, China will effectively coordinate epidemic prevention and control and economic and social development, strengthen macro policy regulation, grasp the critical period of economic recovery, pay close attention to stabilizing the implementation of the economic package policy, continue to do a good job in the “six stabilities” and “six guarantees”, continue to increase efficiency, activate power, constantly consolidate the foundation of economic stability and recovery, and ensure that the economy operates within a reasonable range. In terms of investment, steady investment has continued to increase, the issuance and use of special bonds have accelerated, major projects have accelerated, infrastructure investment has accelerated, and the key role of investment in steady growth is expected to increase. For the domestic steel market, the effective recovery of downstream demand will be crucial, and it also needs the effective production reduction at the supply side to cooperate. Therefore, how to balance the supply and demand relationship in the steel market again will be the top priority. From the supply side, due to the large losses of steel enterprises, the intensity and scope of production reduction of steel mills are increasing, especially the production pace of large and medium-sized steel production enterprises has been significantly affected, which shows that the pace of production reduction of domestic steel enterprises is accelerating, and the release of production capacity will continue to shrink. From the demand side, as the demand is still in the traditional off-season, the impact of high temperature and rain is inevitable, and the downstream demand release is obviously insufficient. From the cost side, the reduction in production of steel mills has led to the reduction of production raw materials, and at the same time, the pressure on raw material prices has begun to decline. At present, the pressure on raw material prices will continue.
Post time: Jul-22-2022