Will steel prices be reduced in 2021? What will be the price trend in the second half of the year?

The possibility of 2021 steel price reduction is relatively small.

Reason 1: Higher costs

Generally speaking, the price of steel by the supply, demand, cost, external environment and other factors. Since the beginning of this year, high demand superimposed high cost of raw materials, international monetary easing policy, environmental protection limit policy requirements, capital market speculation and other multiple factors to promote steel prices rose quickly.

Reason 2: peak consumption season

In the first quarter, the actual steel consumption in the main steel industry increased by 47%, among which the construction industry increased by 49%. Rebar steel continued to become the largest variety of inventory reduction. At the same time, foreign steel demand also gradually improved, mechanical and electrical products export growth driven by strong steel exports. Second quarter climate conditions are good, still in the steel consumption peak season.

Reason 3: The implementation of tariff adjustment

April 28, steel import and export tariff adjustment policy landing, aimed at guiding the steel industry to reduce crude steel production. "May Day" just after the small holiday, the new "steel industry capacity replacement implementation measures" issued, steel capacity replacement ratio significantly from the strict.

Therefore, affected by many factors, steel prices in the second half of 2021 is difficult to appear a significant decline in the possibility, the whole year will still maintain a high running.