Why is the price of ASTM A514 plate high even with high yield low demand

From April, the output of ASTM A514 plate recovered rapidly. In May, the average daily output of crude steel reached a record high, and in June it reached a record high. In July, the average daily output of crude steel remained at a high level of about 3 million tons. After May and June ushered in the peak demand season and double demand brought by rush work, July was affected by the seasonality, and demand dropped significantly. However, after the peak season growth, the price of ASTM A514 plate has not fallen back so far, and it still maintains a high level.

First of all, the policy supports the demand expectation of ASTM A514 plate. Under the influence of the epidemic, China's GDP in the first quarter fell by 6.8%. In order to rapidly boost the economy, China has strengthened counter cyclical regulation and expanded investment in infrastructure and fixed assets. In recent years, we have accelerated the rapid decline of special bonds and local bonds, increased market liquidity, and witnessed a rapid recovery in the economy in the second quarter, and a marked improvement in market confidence.

Secondly, the cost price of ASTM A514 plate has been increasing. In addition to demand, cost is also one of the main factors affecting the price trend of ASTM A514 plate. Since the end of March, the prices of iron ore, coke, scrap and even billet have risen rapidly, reaching new highs. Under the influence of rising cost price, the price of ASTM A514 plate also rebounded, which supported the price of ASTM A514 plate.