2016年2月29日星期一

After Rising, Steel Prices Facing the Pressures for Retracement

After the Spring Festival, China steel market has big up-trend more than a week, part of the market price sheet has achieved the highest rate of increase 30 usd / ton. Compared with the majority of pre-holiday market, most market have ranged 7-23 usd/ton gains. But the steel market can’t be blindly rising, the demand does not sync up, and the trigger price increases stimulate the steel mill’s enthusiasm for recovery production. Also, it stimulates the iron ore and other raw materials to the emergence of a higher increase. However, this is not conducive to the development of the steel city itself, at the same time it increased the supply and demand of steel late. This time, the market needs to think rationally, how stable development, it is necessary to be able to accept by the end demand, but also to push prices farther away longer, the industry does need a consensus to work together.
Rebar
Building materials price fell these two days, Most Chinese rebar market prices fell 1-3 usd/ton, basically the rest of the market in a steady state, farewell for up trend.
Sheet
The steel sheets market has been in up trend, Market in Shanghai, Tianjin, Taiyuan area have been down 2-5 usd/ton, which is Taiyuan hot-rolled 4.75mm thickness down 5 usd/ton. Medium plate in Taiyuan also falls, general plate and alloy plate have been down 6 usd/ton. Apart from a few market in Shenyang, Changsha, Chongqing and other rose slightly, the other markets has been largely restored stability. From the spot market, is about to enter March, the domestic market prices of building materials blocked, while the board automotive and appliance industries, although in good shape after the holiday, but the cold plate as the representative varieties Festival but did not appear as hot rolled, plate like gains, relatively deserted. Machinery, shipbuilding is still no significant increase in orders for the phenomenon.
Stainless Steel
According to market survey, it learned that 304 CRC resource after watching, some businesses appear 7-15 decline. Overall resource stock is still relatively abundant, larger businesses competitive pressures, competition for market share, short-term price slightly under pressure.
From the situation, the amount of steel after the Spring Festival to present the actual resumption of production is small, daily iron water of 20,000 tons or less. Steel mills Plan resumption of production of steel in more than 60,000 tons will be on beginning of March. Currently the average daily crude steel production is still at the level of 2.1 million tons or less. But if the situation is not conducive to the steel resumption of production, the situation will be changed, eventually re-production will not change much. The key factor in the market is still demand in this regard is the normal demand for the release can meet the actual level in March; it also depends whether the end user can accept the raised price after the Chinese New Year.
Overall, steel prices through the Festival and continuously pull up after Festival, it need to rest, and the price appropriate retracement is normal, of course, there is not exist a condition for retracement, so there is no need to panic in the market.
Want to know more price change? Please contact me freely. China National Building Materials Group Corporation is the full name of CNBM, which is one of the largest state-owned groups in China, and listed in the Fortune 500 Enterprises. We are specialized in stainless steel product, steel billethot rolled steel, cold rolled steel etc. 












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