In June, China's steel prices showed a fluctuating downward trend as a whole

In June 2021, the PMI of China's iron and steel industry was 41.0%, with a month on month drop of 6.8 percentage points. In terms of sub indicators, the indexes of new orders, ex factory prices, output, raw material purchasing volume and new export orders all dropped slightly, the inventory index of finished products continued to rise sharply, and the purchasing price and inventory index of raw materials also rose, indicating that the supply and demand of domestic iron and steel industry weakened in June, and the fundamental contradiction remained prominent.

Specifically, the domestic steel market entered the traditional off-season in June. Under the influence of multiple factors such as high temperature and rainy weather and mid year capital assessment, the terminal demand was sluggish, while the supply side still operated at a high level in the first half of the month. Under the situation of strong supply and weak demand, the market inventory showed an inflection point in the middle of the year. In the latter half of the month, although the steel mills limited production and reduced production, the market demand was still sluggish, and the spot price was difficult to boost. In June, the domestic steel prices showed a downward trend.