Steel prices will return to fundamentals in the second half of the year
Reviewing the operation trend of China's iron and steel industry in the first half of this year, it is mainly manifested in the following characteristics: First, steel prices increased significantly year-on-year. In 2021, steel prices continued to rise after the Spring Festival, fell rapidly after hitting a record high in mid May, rebounded slightly in June and entered the shock adjustment market. The year-on-year increase in the price of steel varieties is mostly 30% ~ 50%. The prices of raw fuels such as iron ore and coal coke rose sharply year-on-year and month on month. Second, there is strong demand in downstream industries. With the simultaneous development of domestic and foreign demand, China made a good start in the first quarter and all economic indicators improved. Driven by loose monetary policy and domestic and foreign demand, domestic steel demand has increased rapidly. This can be seen from the inventory. After the Spring Festival, the peak of total steel inve...