Recently, there are signs of a gradual rebound about steel price. And when it enters into off-season, the demand becomes weak but the rate of operation of blast furnace is still very high. Even it shows small range rebound, the adjustment in short period is not end. In the future, the repeat shake is the main keynote.
According to the analysis, there are some changes in the macro market, as well as the steel industry. The dim expectation of earlier stage will be changed in the future. Some professionals in CAMELSTEEL think it has the following reasons. Firstly, the import and export increasing rate in May increase largely, and the foreign exchange reserve is out of expectation. Secondly, the China Bank restarts the 28 day reverse repo and MLF operation. Thirdly, the social stock in May declines quickly. And the imbalance between supply and demand is not intensified.
After the mark down in the past 2 weeks, the cash commodity has decreased with a large amount. And the motivation to sell into corrections is inefficient. And in the short period, it will show the slightly dull trend. So CAMELSTEEL gives the neutral evaluation for the this week. It gives the blue warning.
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