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Steel prices will face downward corrections this week after crazy gains since the market will return to rationality along with strengthening regulations, SMM predicts.

It should be noted, though, that policy guidance is intended to promote stability and to allow market to have an objective view of impact on market supply from relevant policies, such as environmental protection policies, rather than to push steel prices down.  

Steel supply & demand is relatively balanced and steel stocks, though up, are still at low levels. So, any downside room will be limited. 

• [Editor:Wang Linyan]