Chinese steel price will continue to rise in the second half of 2018

In the second half of 2018, steel output will continue to maintain growth, and the stage will put pressure on steel prices. However, environmental protection looks back and strictly guards against the resurgence of “strip steel”. The market supply capacity is suppressed, and steel supply is expected in the second half of the year. The volume will be weakened, and the inventory of key steel enterprises will continue to decline, which will form an effective support for steel prices in the second half of the year.

Under the situation that environmental protection has become the norm, the limited production of the steel industry will also become the norm. Especially in the heating season, the limited output of the steel industry will also reach a peak, and the overall supply will be significantly reduced. Steel prices are still likely to rise if there is no significant reduction in downstream demand. Therefore, it is expected that the steel price will rise in the first half of the year, and the average price will be higher than the first half, with a range of 100~200 RMB/ton.