Domestic Steel Market Sees New Dynamics: Steel Coil Prices Stabilize and Rebound, Cautious Optimism Prevails

Industry data indicates that order volumes in key steel coil consuming sectors—such as automotive manufacturing, home appliance production, and general machinery equipment manufacturing—have remained stable, providing fundamental support for demand. Meanwhile, the continued progress of some infrastructure projects has also driven consumption of related steel products. On the supply side, the normalization of environmental production restriction policies in some regions, coupled with proactive maintenance shutdowns by steel mills, has alleviated market supply pressure somewhat, with social inventories showing a slight downward trend. This marginal improvement in the supply-demand balance is the primary factor supporting the current price stabilization.

However, concerns persist. Fluctuating raw material costs, particularly for iron ore and coking coal remaining at high levels, continue to squeeze steel mills' profit margins, creating resistance to downstream price transmission. Furthermore, uncertainties in overseas demand and changes in the international trade environment pose challenges for export-oriented steel enterprises. Most traders continue to operate based on immediate needs, avoiding large-scale stockpiling, reflecting that while market confidence has recovered somewhat, it is not yet robust.

Analysts suggest that the steel coil market will likely maintain a pattern of fluctuating with a strengthening bias in the short term. Sustained price increases still require further confirmation from actual end-user demand and stronger driving forces. Future attention should focus on macro-policy direction, the recovery strength of downstream manufacturing, and changes in raw material costs. Overall, the market is gradually moving towards a healthier supply-demand balance, but participants are advised to remain rational and actively manage risks.