Short term 40Cr steel prices still have further room to fall

Short term 40Cr steel prices still have room for further decline. However, in the medium term, the general direction of carbon peak and carbon neutral policy will continue. Starting in June, a new round of supervision work will be carried out.

In terms of demand, domestic demand for 40Cr steel still has a certain increase, and the trend of replenishing inventory in domestic and foreign manufacturing industries also continues, so the steel market risk is expected to return to the rising trend after fully releasing. Specifically, we can focus on whether the North China region will introduce new production restriction policies around July and when the inventory of Hangzhou rebar and Tangshan strip steel will drop to a low level, which may become the signal of the market bottoming out.