Recently, several steel mills in Xinjiang, China, announced production cuts in response to the regulatory requirements of the National Development and Reform Commission (NDRC). Some Xinjiang steel companies have reduced daily crude steel production by 10% since March 24, and Sangang Group has also reduced its daily production by 3,000 tons, mainly construction steel.

At the policy level, China will promote the production reduction of steel industry, while in terms of market demand, the slow recovery of real estate has affected the demand for construction steel. The production cuts will drive up steel prices to a certain extent, but the future trend will still be based on the scale of production cuts and the recovery in demand.

In addition, negotiations between China, the US, and Canada on steel tariffs may stabilize the international steel market. If demand picks up and production cuts are expanded, steel prices may continue to rise, otherwise, there is still a risk of a decline.