The general direction of steel prices in 2024 is an increase, although specific varieties and regions demonstrate divergent behaviors.
In Hubei Province, the steel market exhibited an increase in prices during the month of May 2024. Of the 50 steel varieties under observation, 38 exhibited an increase in price, while 9 experienced a decline, and 3 remained stationary. The prices of major steel varieties, including round steel, rebar, wire rod, hot rolled medium and thick plates, and hot rolled coils, exhibited a degree of increase. Furthermore, at the national level, the market trading prices of major steel varieties across the country in the fifth week of May 2024 demonstrated an increase in prices for the majority of steel varieties, both in comparison to the previous period and on an annual basis.
However, the situation in Yunnan Province differs somewhat from that observed in other regions. Although the production of construction steel in Yunnan Province has exhibited a slight increase compared to the same period last year, the decline in demand within the real estate market has resulted in a notable reduction in the volume of construction steel transactions and a considerable year-on-year growth in inventories. These factors exert an influence on the trajectory of construction steel prices.
In conclusion, the trajectory of steel prices in 2024 is contingent upon a multitude of factors, including market demand, the supply situation, policy regulation, and control. In certain regions, the rise in steel prices was prompted by the sustained recovery of the steel industry, the coordinated stabilization of raw material procurement activities, and the anticipated surge in steel demand from ultra-long-term special treasury bonds and large-scale equipment replacement. In Yunnan Province, however, while construction steel production remained stable, the downturn in the real estate market and the decline in construction steel turnover had an impact on demand for construction steel, which may have led to a suppression of prices.
The overall trend of steel prices in 2024 represents a complex market phenomenon, influenced by a variety of factors. Consequently, price performance may vary in different regions and at different points in time.
