The supply and demand contradiction in the high-frequency welding H-beam market has become more severe.

With yesterday's continued downward trend in the overall market for hot-rolled coil, coupled with unchanged supply-demand tensions, frequent low-price resources are emerging in the market. Under the still-pessimistic market sentiment for high-frequency welding H-beams, it is expected that the mainstream trend will continue to decline and adjust. Domestic steel prices are accelerating their decline, with a significant increase in the adjustment力度 compared to yesterday. As the futures market continues to fall and spot transactions remain weak, along with further intensification of market pessimism, domestic steel prices have successively broken previous lows and hit new lows. Intermediary operators' enthusiasm has waned, and downstream buyers are only purchasing as needed, with overall trading activity reaching an ice point. The 2100 yuan price level for upstream billets is not the end of this adjustment. The downward adjustment operations for various finished products like rebars, high-line steel, hot-rolled coil, medium and thick plates, and cold-rolled sheets will continue, with no bottom in sight. It is still advised to be cautious in the market. The predicted adjustments for medium and thick plate manufacturers have already reached 2350 yuan, and for hot-rolled coil, it has reached 2650 yuan. This bearish sentiment will further expand the space for steel prices to continue falling. Looking at the current situation, domestic steel prices are under multiple negative pressures, including market geopolitical crises, the adjustment pressures faced by the steel industry under domestic structural transformation, the slowing of overall economic growth, the further deterioration of the supply-demand situation, and constraints on liquidity. The bottom for high-frequency welding H-beams is hard to define by simple cost theory or historical patterns. Following the trend and timely sales remain the main melody of current operations.

Due to slowing economic growth, steel enterprises are facing increasingly difficult financing challenges; with the country's intensified environmental protection efforts, a batch of outdated production capacities have been eliminated, yet this year's steel production has reached a new historical high. The sharp decline in mineral prices has further reduced steel costs. Influenced by these multiple factors, steel prices have continued to decline this year. Additionally, with a significant decrease in construction site activity recently, the steel market has seen subdued sales, and it is expected that the demand for high-frequency welding H-beams will remain low in the near future. While there is a slight indication of economic recovery trends, the EU is still grappling with the threat of deflation, and emerging economies are struggling to keep pace. China's economy is in a transition period of "three叠加" economic growth, with a slowdown in growth rate and below expectations, and nearly no major economic stimulus policies implemented throughout the year, with insufficient internal momentum. Against this backdrop, the domestic steel industry has also entered a phase of adjustment and pain, with market prices in a one-way decline trend, without any significant rebound throughout the year, continually setting new historical low points. The domestic seamless pipe market has shown an even more excessive trend, with a symbolic price increase of 50-100 yuan in April, but otherwise, it has been in a continuous downward spiral without any desire for a tentative increase. Fortunately, the price decline of X42 pipeline pipes is greater than that of steel, resulting in lower production costs and changing the profitability of steel mills. However, for pipe manufacturers, this has not translated into actual benefits, as they have been engaging in disorderly, bottomless price reductions for seamless pipes, leading to a temporary decline in pig iron prices. At the same time, the industry is entering an accelerated reshuffling stage, eliminating outdated capacities and accelerating the exit of steel trading companies from the market, with significant contraction in social inventories and low profitability. The traditional off-season has seen a decline in demand growth, while steel production continues to grow at a high level, exacerbating the supply-demand contradiction in the high-frequency welding H-beam market. The daily output of crude steel has now achieved four consecutive increases, and the supply is expected to continue rising in the later period.