Supported by favorable macroeconomic factors, persistently high molten iron output and rising coke prices, steel prices remain elevated. However, as the rainy season arrives in southern China in May, pressure of a marginal decline in demand is gradually emerging, and the trading volume of construction steel has shrunk. It is expected that there is limited room for steel prices to rise further in the short term, while furnace raw materials show a pattern of weak iron ore and strong coal and coke. 

 Recently, the steel market has maintained a volatile and firm trend with an overall price rebound. In Tangshan, the steel market sentiment index rose from 47.17% on April 10 to 54.72% on May 8, indicating a recovery in market confidence. Spot trading volume has rebounded but with obvious fluctuations. On the macro front, China's manufacturing PMI registered 50.3% in April, down 0.1 percentage points month-on-month from 50.4% in March. It has stayed above the boom-bust line for two consecutive months, reflecting stable overall manufacturing prosperity with slowing expansion momentum. The non-manufacturing business activity PMI stood at 49.4%, down 0.7 percentage points from 50.1% in March and falling below the boom-bust line, suggesting a cooling in service sector activities. 

The stable manufacturing PMI underpins demand for industrial steel including plate and special steel, while the weakening non-manufacturing sector implies a marginal slowdown in overall economic momentum, giving limited boost to steel demand.