Steel Price Forecast for August 2023 in Local Market
In July, the domestic steel market showed a stage of fluctuation and rebound. Under the "profit seeking effect", the production enthusiasm of domestic steel production enterprises was strong, and the domestic steel production maintained a certain level of resilience. The daily crude steel production in China will be maintained at around 3 million tons.
From a cost perspective, the average price of iron ore, scrap steel, and coke moved up in July, resulting in an overall upward trend in steel production costs. From the demand side, after the start of the Autumn Festival in August, the impact of weather on project construction will gradually ease, and the demand for construction steel will recover to a certain extent. The demand for steel in the manufacturing industry is still expected to release smoothly.
In summary, the domestic steel market in August will exhibit a pattern of "overall economic recovery, intensive policy implementation, significant boost in market confidence, and gradual slowdown in the off-season effect". The profit forecast for some types of steel is relatively optimistic in August.
