Geopolitical Turmoil Meets Stabilizing Demand: Steel Market Enters Oscillating Pattern of “Strong Costs, Weak Demand”
This week, escalating tensions in the Middle East and the breakdown of US-Iran negotiations triggered a surge in international crude oil prices. This rally drove a rebound in upstream raw materials like iron ore and coking coal, providing strong cost support for the domestic steel market.
Driven by these factors, the futures market performed strongly. However, the spot market remained cautious due to a moderate recovery in actual demand and a slowdown in destocking, creating a divergence characterized by "strong futures, stable spot."
Currently, the steel market is entering an oscillating pattern defined by the game between "strong costs" and "weak demand." Prices are expected to consolidate within a range in the short term, remaining mostly stable with selective increases, and with limited room for adjustment.
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