“Crazy” steel cooling is expected to return to normal levels in June

When steel prices soar, the mills make a lot of money, but at the bottom of the stream, they lose money, and the industries associated with steel are affected to a greater or lesser extent.Steel mills say price increases are falling so fast that downstream retailers can’t keep up.Unexpected soaring prices increase the operating costs of downstream enterprises and increase the difficulty of operation, thus greatly affecting the purchasing intention, reducing the purchase of goods and reducing the volume of transactions.The recent drop in steel prices, is the inflection point to determine the signal?One answer came in a May 24 CISA statement, which said steel production remains high and prices are unlikely to rise significantly.As of May 24, most of the domestic commodity futures market closed down, iron ore fell more than 5%, closing at 1064 yuan/ton, the largest intraday decline of 9.44%;Hot rolled coil closed down nearly 4 percent and rebar fell more than 3 percent.Prices for everything from steel to iron ore have fallen sharply recently, data show.Steel prices, in particular, have given up gains since May, returning to fundamentals.