There is a declining demand in the short term. From steel to iron ore, prices have fallen sharply recently. Steel prices, in particular, have fallen back from the increase since May and returned to fundamentals. Experts predict that with the arrival of low demand season, steel prices are expected to return to normal levels in June.
In the long run, the long-term price of steel may still have some support, because in the future, with the increasing environmental protection requirements of steel production capacity, especially the carbon neutrality requirements of the peak carbon dioxide emission, the manufacturing cost of the steel industry may indeed rise further.
Impact of rising steel prices: Generally speaking, rising steel prices will affect the whole industrial system. All industries that need steel as raw materials are affected first, such as machinery manufacturing, water conservancy construction, electric power industry, highway and railway construction, real estate construction and so on.
Once these industries will affect their development, they will reduce their scale and will inevitably cause a large number of people to lose their jobs. The vast majority of the specific operators in these industries are migrant workers. This will make many migrant workers unemployed. Of course, the sharp rise in steel prices will affect the lives of rural people.
Affect infrastructure construction. Agricultural machinery in rural areas is an advanced production tool, that is, productivity, such as harvesters, transplanters, tractors, hoes and sickles, as well as many hardware and electrical products and agricultural products processing machinery necessary for daily life in rural areas. Once the price of steel rises, it will inevitably lead to the simultaneous rise in the prices of these products linked to steel.