Cost bottoming, policy strengthening, and steel prices will rise together

Gold ten futures on April 19 news, after the Spring Festival, the main factor leading to the decline in steel prices is the poor demand for downstream steel: the actual end of the steel continued to accumulate, the expected end of the local debt pressure, new projects are limited, the stock of project funds in place slowly and other issues, but is currently expected to improve under the promotion of policy. After the steel price fell significantly in the early stage, the fundamental contradictions of steel have been digested. After entering the peak season of gold three silver four, steel prices have gradually ushered in a bottoming out market, and at present, in the context of the macro marginal positive and the fundamental toughness of steel still exists, steel prices may maintain a rising market. Recently, the macro marginal positive drive - the National Development and Reform Commission said that it will promote all additional issuance of national debt projects to start construction before the end of June this year will strongly promote the start of the project process to improve downstream steel demand, steel demand is expected to support steel prices; in addition, the cost support logic as the basis for steel prices to stabilize is still there, hot metal production is still rising steadily, steel destocking slope is acceptable, steel fundamental contradictions are not obvious and resilient, is expected to form a supply and demand pattern and then promote steel prices upward.