Steel market stabilized and rebounded Steel pipes, steel plates, stainless steel plates

Since the beginning of this year, thanks to the optimization and adjustment of previous epidemic prevention and control policies, the macro policy effect has been evident, and the domestic steel market has performed moderately. Several indicators have stabilized and rebounded, and even experienced rapid growth, specifically manifested in the following four aspects:

First, the related indicators of the steel market have stabilized and rebounded. In the first two months of this year, China's steel market related indicators showed a steady recovery and even rapid growth momentum. According to the National Bureau of Statistics, from January to February this year, the added value of industries above designated size nationwide increased by 2.4% year-on-year; National fixed assets investment (excluding farmers) increased by 5.5% year on year, 0.4 percentage points faster than that of 2022. Among them, industrial investment increased by 10% year-on-year, and infrastructure investment increased by 9% year-on-year, with a strong rebound. Although the national investment in real estate development decreased by 5.7% year-on-year, the decline has narrowed significantly and is developing well. The macroeconomic recovery has significantly driven the general improvement of related indicators in the steel market, and domestic steel demand has also improved accordingly.

Second, steel exports showed a rapid growth situation. According to the statistics of the General Administration of Customs, from January to February this year, China's steel export volume was 12.19 million tons, a year-on-year increase of 49%. The author believes that the main reason for the strong growth of steel exports is the "tight supply and high prices" in the international market, highlighting the competitive advantage of China's steel prices. According to monitoring data from Lange Iron and Steel Research Center, in early March, China's export price of Hot Rolled Coil (FOB) was $60/ton to $160/ton lower than that of other major export countries.