According to Mysteel's midday report, most steel prices have risen, and the black futures report is red. It can be seen that the reason why steel raw material futures are red is that the profit margin of steel mills has been repaired and steel prices have gradually picked up:

1. First, the profit rate of steel mills has recovered, especially electric furnace plants. Due to the decrease of scrap cost, the electric furnace factory turned losses into profits and increased its production enthusiasm, which is also the main reason for the recent frequent price increase of electric furnace factory. Because the cost performance ratio of scrap steel is more advantageous than that of molten iron, most steel mills have increased their enthusiasm for using scrap steel.

2. Secondly, with the gradual recovery of steel prices, the effect of steel destocking has appeared, and the production enthusiasm of some steel mills has improved. Combined with the recent continuous decline in the arrival volume of steel mills, most steel mills have the demand for replenishment, and it is expected that the price of scrap steel will mainly increase in the short term.