The steel market has attracted widespread attention, and many people believe that the rise in domestic steel prices is a special phenomenon in China's current development. Surprisingly, the United States will also face a massive steel shortage. The main reason for the rise in domestic steel prices is insufficient production capacity. Limited production in Tangshan and Handan affected about 5% of steel supply, with smelting becoming a bottleneck.

Supply shortages have caused profits per ton of steel to rise sharply. The market is buying up but not down, and some downstream customers are panicking to restock. The large-scale rise in prices of domestic steel mills also reflects the recovery of domestic production and the expansion of steel production demand. The epidemic in my country has basically been controlled, the production capacity of various enterprises has increased, and the demand for steel has increased, thus exacerbating the contradiction between domestic steel supply and demand. Affected by carbon neutrality and carbon peak shaving policies, domestic steel prices have continued to soar this year. Jiangsu Xugang Construction Steel, Shanxi Jinnan Construction Steel, Shanxi Zhongyang Construction Steel, Shougang Changzhi Steel Plant Construction Steel and other companies released price adjustment information.

As the economy gradually recovers and U.S. President Biden vigorously promotes infrastructure construction plans, U.S. demand for steel is expected to grow significantly. Scarcity and panic are driving up steel prices and inventories. The sharp rise in steel prices has put downstream companies under greater pressure. Already weak profit margins have further accumulated. The downstream processing and manufacturing industry is in industrial throes waiting for the steel market to cool down. Steel market resources are still in short supply, and prices are rising and rush for goods occurs frequently. The related varieties of iron ore and coke are relatively strong, and the cost performance of scrap steel is also relatively good, which has a certain supporting effect on scrap steel. The short-term scrap market is still likely to rise.

Due to the substantial increase in the output of electric furnace steel, the overall gap in supply and demand of crude steel is still difficult to make up, and the ability of electric furnaces to adjust the balance between supply and demand of crude steel has weakened. It is difficult to change the situation of water diversion for thread types such as normal production being limited in a short period of time, and the slow recovery of long-process thread production is expected to continue. In order to effectively control the spread of the epidemic, various regions have strengthened traffic supervision, and some areas have also adopted measures such as city closures and road closures. Some transportation companies failed to resume work as scheduled, which had a great impact on the import of raw materials and the export of steel products. Logistics nodes such as ports, terminals, and warehouses also encounter problems such as restricted operations and shortages of personnel and epidemic prevention materials, which seriously affect the normal transportation of steel and raw materials.