As the country's “steady growth” policy measures continue to exert strength, steel demand is expected to remain stable in the later period. Affected by the high level of steel production capacity release, in the later period, steel prices are unlikely to rebound sharply and will continue to fluctuate slightly.

The national economy is expected to run smoothly, which is conducive to the steady growth of steel demand. Since the beginning of this year, despite the complicated and severe international situation, the domestic economic operation has been under downward pressure, but China's economic growth has maintained a generally stable, stable and progressive development trend. In the first half of the year, China's GDP grew by 6.3%, and the main macroeconomic indicators were operating in a reasonable range, laying a good foundation for achieving the target of 6.0%~6.5% for the whole year. In particular, the growth rate of infrastructure investment and manufacturing investment in the country has accelerated, indicating that a series of “steady growth” policy measures introduced by the state have already played a role. It is expected that the effect of the policy will continue to emerge in the second half of the year. The continuous investment in capital construction, the steady growth of real estate and manufacturing will help the steel demand to remain stable.

The stricter measures for environmental protection and production restriction are conducive to the balance of supply and demand in the steel market. The ultra-low emissions of the steel industry have been included in the Prime Minister’s government work report for two years and have risen to the level of national strategy. Since the beginning of this year, various environmental protection policies and measures have been gradually improved and have been gradually implemented. In order to further reduce industrial pollutant emissions and improve air quality, Shijiazhuang, Tangshan, Wu'an and Handan in Hebei Province have successively decided to stop production and peak production in a new round of iron and steel enterprises in late June and early July. In the later period, if environmental protection and production restrictions are strictly implemented, steel production enterprises that achieve ultra-low emission standards will still play their full role. The production capacity of enterprises that fail to meet the standards will be limited, which will alleviate supply pressure and help the balance of supply and demand in the steel market.

Steel inventories are on the rise and the market pressure is high in the later period. In June, steel social inventories rose from a downward trend, rising to 14.01 million tons at the end of June, an increase of 530,000 tons, an increase of 3.94%. Since July, steel inventories have continued to rise. As of July 12, it has risen for five consecutive weeks, rising to 14.48 million tons, an increase of 480,000 tons from the end of June, an increase of 3.42%. In terms of specific varieties, the stocks of steel bars and wires in long products increased by 230,000 tons and 120,000 tons respectively from the end of June, and the stocks of hot rolled coil and plate increased by 140,000 tons, and the inventory of cold rolled coils decreased by 0.33 million. Ton. Long stocks, hot rolled coils, and medium and heavy plate stocks increased, and the market pressure was relatively high in the later period.