Domestic Steel Prices May See a Fluctuating Rise in August

With the arrival of August, the domestic steel market is facing a series of complex changes, with prices like HR Steel Coil, Gi Pipe, Steel Round Pipe ,etc. Showing a volatile upward trend. Industry experts analyze that a combination of factors will drive steel prices higher in the short term, potentially leading to a supply-demand imbalance in the market. This shift not only impacts the steel industry but also significantly influences the procurement plans of downstream companies.

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The Golden September and October Shopping Season Drives Procurement Demand

The approaching peak purchasing season, known as the "Golden September and October Shopping Season," is a key factor driving steel price increases. During this period of year, industries such as construction and machinery manufacturing typically increase production to meet market demand, leading to a significant increase in steel procurement demand. This seasonal demand fluctuation has established a clear pattern in the market, leading to a typical upward trend in steel prices during this period.

The Yajiang Hydropower Station Project Increases Steel Demand

The full progress of the Yajiang Hydropower Station construction project has also had a profound impact on the domestic steel market. As a major infrastructure project, the Yajiang Hydropower Station generates enormous demand for steel. It is estimated that the project will consume millions of tons of steel during construction, undoubtedly creating a new growth point for domestic steel demand. This large-scale project not only boosts current steel demand but also provides support for the long-term development of the steel industry.

Production Restrictions at Steel Mills in the Beijing-Tianjin-Hebei Region Affect Supply

It is worth noting that September 3rd of this year marks the 80th anniversary of the victory of the Chinese People's War of Resistance Against Japanese Aggression and the World Anti-Fascist War. To ensure environmental quality during the commemoration, all steel mills in the Beijing-Tianjin-Hebei region will implement production restrictions from August 20th to September 7th. This measure will directly lead to a decrease in steel production and a reduction in market supply. With demand remaining unchanged or increasing, the reduced supply will further exacerbate the supply-demand imbalance in the market and drive up steel prices.

Sellers are advised to plan their purchases in advance