Evolution of inventory & demand is key to steel prices
The holiday season has just started and the demand has gradually been released in China. The current rise in steel prices was mainly due to low inventory of steel mills, and the steel traders were also supporting. The continuous and rapid rise of stocks indicated that the current market optimism was high, but it also exerted greater pressure on the follow-up steel prices.
In the future, steel prices would depend on downstream demand, and it was expected that the steel price would decline at a high level. Therefore, stocks, resumption of production and demand for start-ups jointly determined the phase sustainability of the steel industry.
