Demand improvement of steel

steel prices still have rebound potentialSince mid-March, the steel market has stabilised and experienced three consecutive trading days of rebounds. As of March 14, the price of the main rebar contract was 3267 yuan/ton, rebounding 58 yuan/ton from the low of March 11, a rise of 1.8%; the price of the main hot-rolled coil contract was 3443 yuan/ton, rebounding 96 yuan/ton from the low of March 11, a rise of 2.87%.The author believes that the steel market has stabilised. With the recovery of demand, steel prices will continue to follow the rebound trend, but the extent of the rebound depends on the degree of demand recovery.Analysis of the operational logic of the steel market since MarchThe decline in steel prices in early March was mainly caused by two reasons: firstly, the tariffs imposed by the United States on steel and aluminium products, and the anti-dumping duties imposed by Vietnam on Chinese hot-rolled coils, which came into effect on March 12 and March 8 respectively, raised concerns about the decline in steel exports; secondly, the upgraded environmental production restrictions in the Tangshan region of Hebei and news regarding the regulation of crude steel production led to a significant drop in iron ore prices, dragging down steel prices.The rebound in steel prices after mid-March was mainly due to the lower-than-expected CPI (Consumer Price Index) in February in the United States, which enhanced expectations for interest rate cuts by the Federal Reserve, and the information released during the Two Sessions increased the certainty of policy expansion. Meanwhile, in the second week of March, steel demand continued to recover, especially the better-than-expected improvement in apparent consumption of hot-rolled coils further boosted market confidence.
The demand for galvanised steel pipes is increasing, including other products such as galvanised coils, steel pipes, and scaffolding.