On April 24, the domestic steel market prices generally fell, and the ex-factory price of Tangshan common billet was stable at 4,750 yuan/ton. Due to the sharp drop in black futures on Friday, the price of steel billets fell on Saturday, and the pessimism in the market increased.

According to data from the China Iron and Steel Association, steel production in April increased significantly month-on-month. At the same time, due to the impact of the domestic epidemic, downstream construction and logistics transportation were blocked, and the steel mills were not able to deliver goods smoothly, resulting in a gradual increase in inventory. Of course, we will also see more and more regions resume work and production, but it will take time for demand to recover. In the short term, the fundamentals of supply and demand in the steel market are weak, and steel prices may weaken and adjust.