Steel prices in Chinese market expected to rebound in Apr
Looking back at the Chinese steel market in the first quarter of 2023, the overall price of steel products has basically risen. In addition, the price correction in the middle and late March relieved some sales pressure, coupled with a lower ratio of inventory and sales in the same period of history, the destocking in April can still be maintained.
The increase in the production cost of steel mills has a certain support for the circulation price. Therefore, looking forward to April, the market trend still has a chance to rebound. However, if the mills do not aggressively cut production and rein in capacity, prices could weaken while there is an oversupply.
Market participants consider that if capacity restrictions are to be implemented, it may be better to operate in the second quarter than in the second half of the year.
