(HSV VIETNAM GROUP) – After China's Labor Day, the initial rise in steel prices was largely influenced by expectations and macroeconomic sentiment, especially evident in the increase in rebar contracts in April. Although the increase exceeded 300 points, there is still anticipation of further growth.
At the macro level, China's National Development and Reform Commission's discussions on large-scale equipment upgrades and consumer goods exchange programs are expected to boost steel demand. Additionally, real estate incentive policies in some cities are boosting market sentiment, although the short-term impact on steel demand is limited.
Although policies such as the “innovate old” initiative are expected to take effect in the second half of this year, rising raw material prices are affecting the profits of steel mills. Despite stimulus optimism, supply and demand fundamentals remain relatively unchanged. Market confidence hinges on the on-demand release, with the possibility of further steel price increases if demand exceeds expectations.
Ha Diem HSV