On March 7th, Tangshan,China started a heavy pollution level 2 response warning. The first impact, Tangshan steel billet continued to rise, and downstream finished product prices continued to rise. In the past two and a half months, the overall price of steel has increased by about 30%, a record high since 2013. The steel market started ahead of schedule after the holiday this year, with a huge increase. What has happened to the steel market? Will it continue to rise? What is the confidence of steel enterprises?

After continuous changes to the entire market, I analyzed the following reasons:

With the new round of steel price increase, it has now directly stimulated the supply and demand of the market. With the stability of market demand, it is believed that the price of the steel market in the future is bound to quickly return to rationality. Let us wait and see!

1. The domestic steel market sales increase after the holiday. After the holiday, the new crown epidemic has basically stabilized, and companies have basically returned to normal conditions. After the epidemic has been suppressed, the release of just needed peaks. Downstream steel traders began to replenish stocks one after another, and there was a peak in demand in the entire steel market.

2. The promotion of cost. The most direct impact on the cost of steel is coking coal, iron ore, and scrap iron, and the prices of these raw materials have been at a high price recently. For example, the price of iron ore has skyrocketed in recent years, with an increase of 60%, a record high in the past eight years. With the mandatory requirements of automobile transportation in recent years, freight costs have increased, and these costs will be accumulated by steel mills into steel prices.

3. The impact of domestic environmental protection policies. In recent years, the country's environmental protection policy has been under high pressure, and a group of small and medium steel enterprises that do not meet environmental protection standards and do not have core technologies have been eliminated. Large-scale steel companies are well-funded. With the impact of the country's production reduction and production restriction policy, my country's steel inventory has continued to increase.

4. The influence of internal and external economic environment. With the basic control of the new crown epidemic abroad and the rapid recovery of foreign economies, the impact has recently been transmitted to the country. Focusing on the two major goals of "carbon neutrality" and "carbon compliance", the country has initiated a new round of supply-side reforms. The most direct impact is the reduction in the country's crude steel output.