As the peak season draws to a close, demand is diverging, and steel prices are consolidating at high levels.

In May 2026, the domestic steel market entered the final stage of the traditional peak season, exhibiting an overall trend of high at the beginning and low at the end, mixed bullish and bearish sentiment, and a divergence between the north and south. The market saw a brief surge after the holiday, with steel prices rising in the short term. However, with the arrival of the rainy season in the south and a slowdown in construction activity, demand weakened marginally, and the upward momentum gradually diminished. The market as a whole entered a high-level consolidation phase, with supply and demand dynamics becoming the core factor driving market trends.

The steel industry has achieved steady and high-quality development, and the market circulation pattern has continued to optimize.

Entering 2025, the domestic steel industry steadily promoted industrial upgrading, and the overall steel market operation tended to be stable. The industry steadily moved towards green, low-carbon, high-efficiency, energy-saving, and high-quality development. Against the backdrop of a steady recovery in the macroeconomy, the orderly implementation of infrastructure projects, and the continued warming of the real economy, the supply and demand relationship in the steel market continued to adjust, the industry's resilience continued to strengthen, and the overall market showed a good development trend of steady progress.

Demand rebounds during peak season, steel prices fluctuate upwards.

In April 2026, the domestic steel market ushered in the traditional "Silver April" peak season for consumption, with the overall market showing a pattern of initial stability followed by a rise, a volatile but strengthening trend, and product differentiation. As temperatures rose across the country, infrastructure and public works projects resumed in various regions, releasing pent-up demand. Coupled with steel mills' proactive production control, continuous inventory reduction, and stable cost support, the overall steel market sentiment recovered significantly compared to the first quarter, and industry profitability steadily improved.

Supply and demand imbalances become more prominent, prompting the industry to accelerate quality improvement and transformation.

The domestic steel industry is undergoing a period of profound adjustment. Under multiple pressures, including a prominent contradiction between supply and demand, high raw material costs, and escalating international policy barriers, the industry as a whole is operating steadily, but profitability is under pressure. Enterprises are accelerating production control and inventory reduction, promoting structural upgrades and low-carbon transformation, and striving to move towards a new stage of high-quality development, according to the China Iron and Steel Association.

Steel prices fluctuated at low levels due to the off-season demand and the implementation of new policies.

In January 2026, the domestic steel market was in its traditional off-season for demand. Coupled with factors such as pre-Spring Festival holiday shutdowns and the implementation of new steel export policies, the market exhibited a "rising then falling, low-level fluctuation" trend. The industry as a whole faced the temporary pressure of "high costs, weak demand, and inventory accumulation," highlighting the market's rational adjustment characteristics.

The steel market is undergoing steady supply and demand adjustments, and the industry is entering a virtuous cycle of development.

Since 2025, under the backdrop of a steady recovery in the macroeconomy, the domestic steel market has seen continuous optimization and adjustment on both the supply and demand sides, a gradual warming of the market trading atmosphere, and a generally stable industry operation, with the market developing more rationally and maturely. With the continued implementation of various pro-growth policies and the continuous release of vitality in the real economy, steel consumption scenarios have been continuously expanding, providing solid support for the industry's steady progress.