Since the beginning of this year, China steel market has been volatile. After the downturn in the first quarter, since the second quarter, demand has gradually recovered. In the recent period, some steel mills have seen a significant increase in orders and even queued up for delivery.

In March, some steel mills’ inventories reached more than 200,000 tons, setting a new high in recent years. Beginning in May and June, the national steel demand began to recover, and the company’s steel inventory began to gradually going down.

Data show that in June, the national steel production was 115.85 million tons, an increase of 7.5% year-on-year; the apparent consumption of crude steel was 90.31 million tons, an increase of 8.6% year-on-year. From the perspective of the downstream steel industry, compared with the first quarter, the real estate construction area, automobile production, and ship production increased by 145.8%, 87.1%, and 55.9% respectively in the second quarter, which strongly supported the steel industry.

The rebound in demand has led to the recent rise in steel prices, especially high-end steel with higher added value, which has risen faster. Many downstream steel traders have not dared to stock up in large quantities, and adopted the strategy of fast in and out.

Analysts believe that with the end of the rainy season in southern China and the arrival of the “Golden Nine and Silver Ten” traditional steel sales season, the social stock of steel will be further consumed.