In May 2024, the raw material prices for steel production and the international shipping freight rates exhibited dynamic and complex trends.

On the steel raw materials side, several factors came into play. Firstly, the profitability of steel enterprises improved, leading to an increase in crude steel production, which

subsequently resulted in a corresponding increase in supply. However, the entry of the southern flood season, progressing from the Pearl River Basin to the Yangtze River

Basin, constrained terminal demand due to concurrent drought and flood conditions. Additionally, international geopolitical conflicts persisted, causing an upward surge in

commodity prices that had a ripple effect on the foreign ore market. Lastly, market sentiment was volatile, and operational caution prevailed, adding to the uncertainty in

pricing. Given these dynamics, the domestic steel market was cautiously optimistic, with prices expected to consolidate after an initial surge.

Turning to the international shipping freight rates, the scenario was equally intriguing. Traditionally, May marks a lull in the international shipping market.   However, 2024

defied this norm. Since April, freight rates on European and American routes have increased significantly, with some routes experiencing surges of 50% to 60%.     

This led to a resurgence of the "one container, hard to find" situation. Multiple factors contributed to this unusual price surge, including geopolitical tensions in the Red Sea

region, a scramble for exports among foreign trade enterprises, and increased pricing by shipping companies.

Overall, both the steel raw material market and the international shipping industry experienced significant shifts in May 2024, driven by a complex interplay of supply-demand factors, geopolitical tensions, and market sentiment. These developments underscored the dynamic and interconnected nature of global commodity markets.