Short-term Steel Prices Will Follow the Cost Side with Downward Potentials
More steel mills are likely to carry out maintenance, which will significantly pull down the overall supply. Hence the fundamentals of steel will improve marginally. However, SMM believes that due to the off season, the end demand is not enough to support the sharp rebound in steel prices. It is expected that the short-term finished product prices will follow the cost side with downward potentials. In addition, since the current production reduction of steel mills is mostly focused on rebar, rebar prices are expected to outperform that of HRC.