Current, steelmaking profit falls substantially, will force steel enterprises to overhaul limit production.At the same time, under the promotion of steady growth policy, downstream demand will improve, steel prices are expected to show a strong run in the third quarter.

From late April to late June this year, the steel market as a whole presents the pattern of supply increase and demand decrease.Meanwhile, crude steel and steel production constantly refresh record high, but the downstream industrial demand for steel weakened, steel price trend oscillation is weak.Since the end of June, the steel market supply from the peak of a small decline, but downstream demand in the steady growth driven by may improve, we expect steel prices in the third quarter will show a strong run.

Periodic supply highs may have passed

According to the data, the daily output of crude steel reached a record high in the first half of June, and it is expected that the daily output of crude steel will fall after the second half of June.

Environmental protection production limit is an important measure to regulate steel market supply. In the second quarter, crude steel and steel production continuously reached a record high.On June 23, tangshan city ranked the bottom of the air quality rankings, issued a heavy environmental protection plan, steel prices in the short term "swing".On July 1, tangshan issued a document showing a slight easing of production restrictions, steel prices in the short term fell high.On the whole, after the end of June, the steel market phase supply peak may have passed, the market is expected to reduce the daily output of pig iron in July by 150,000 to 170,000 tons.In addition, from August to September, north China steel mills may have a larger scope, greater efforts to limit production overhaul.