Following the Labor Day holiday, major steel prices in the Chinese market have risen across the board, with active trading and strong price support from local distributors, reflecting optimism for future trends. 

Market participants indicated that the continued rise in iron ore and coking coal prices has provided strong support for steel costs, coupled with a recovery in demand from infrastructure and manufacturing sectors. Therefore, in the short term, prices of cold-rolled coil (CRC) and hot-rolled coil (HRC) are trending upward, with prices likely to fluctuate at high levels in May and experience intense price volatility.

However, downstream manufacturers have become less accepting of current prices, and the purchases are still primarily driven by actual demand. Based on statistics from the automotive and home appliance manufacturing industries, the subsequent demand for CRC and HRC may gradually weaken, making it difficult to sustain the trend in the long term. 

On the supply side, production at CRC and HRC increased in May, leading to higher inventory levels and increased sales pressure.