The situation in the Middle East remains unstable, keeping oil prices high and raising steel production costs. The conflict has a mixed impact. The conflict supports prices through higher costs, but also reduces China's exports to Gulf countries, weakening international market demand. 

Domestically, demand is recovering slowly, and inventories are declining but remain high, putting pressure on prices. Overall, the market expects steel price gains to stay limited in the short term due to weak demand and constrained exports.