Looking back at April and May, from a macro perspective, there are three reasons that have a significant impact on steel prices: (1) the expected acceleration of special bond issuance in May; (2) the bottoming out of the domestic inventory cycle has pushed up price elasticity repair; (3) the 517 real estate policy.

From the above macro policies, the impact on steel prices is more seasonal or expected. From a time perspective, these policies take a long time to affect the fundamentals of steel supply and demand.

At present, the domestic macro has entered a "vacuum period", and the support for steel prices has gradually faded. Coupled with the off-season, steel prices may be under pressure in the near future. However, there are still positive expectations to support the subsequent period, such as the expectation of a central bank interest rate cut in June, the acceleration of special bond issuance, and the expectation of the Third Plenary Session of the 18th CPC Central Committee in July, all of which have a bottoming effect on steel prices.