Why is it difficult for steel prices to rise sharp

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Why is it difficult for steel prices to rise sharply

after the National Day holiday, the domestic spot steel price experienced a process of first restraining and then rising, and the market transaction has slightly warmed up, but it remains to be seen whether the volume of demand at wise end can be sustained. The price of imported iron ore continues to fall, while the global ore supply is still growing

according to the latest market report, the domestic spot steel price composite index closed at 152.06 points in the recent week, up 1.84% for the week. After the festival, the inventory pressure of the steel market has increased on the whole, while end users are more wait-and-see, and most merchants cut prices to actively ship goods. At the beginning of the week, the market transaction performance was light. By the middle of the week, steel enterprises in some regions limited production in advance, and the latest pricing of mainstream steel mills was stable and rising, which improved the market sentiment. The black futures market rose strongly, the billet price rebounded, the spot steel market also actively followed, and the market transaction warmed up

in the construction steel market, the price rose slightly. The ton price in Shanghai, Hangzhou, Jinan and other places increased by 10 yuan to 150 yuan/ton a week, while the price in Shenyang, Harbin and other places fell slightly. At present, the implementation of environmental protection policies is making the production and sales of steel mills, including the components of charging system, balanced, the market supply and demand level has improved, and there is a certain market foundation for the stabilization and recovery of construction steel prices

in the plate market, the price rises as a whole. The price of hot-rolled coils rose sharply, and the ton price in Shanghai, Guangzhou, Wuhan and other places rose by 60 yuan to 180 yuan a week. From the perspective of inventory, the overall resources of the market are still relatively small, and the steel mills are relatively willing to support prices. The consumption pressure of the market still exists, and the price may also fall after rising in the short term. The price of medium and heavy plate rose sharply, and the ton price in Shanghai, Shenyang, Xi'an and other places rose by 50 yuan to 260 yuan a week. In some markets, there is a certain phenomenon of falsely high prices, and the actual shipment of merchants is not very ideal

the overall market for building materials stolen by iron ore organizations and gangs is still weak, and the price of imported ore continues to fall. According to the latest report, in the domestic ore market, the price of iron concentrate powder in Hebei region is basically stable after the festival. The price of imported ore continued to fall. As of the 12th, Platts' 62% grade iron ore index was $58.1 per ton, down $3.25 from before the holiday, hitting a new low since late June this year. In the current import mining market, the demand is less than expected, but the supply is rising. In the past month, Australia's iron ore supply has increased significantly

according to the analysis of relevant institutions, the fundamentals faced by the current domestic steel market are still intertwined. On the one hand, the market supply is expected to shrink, but on the other hand, the northern market has entered the low season of demand, and the market's expectation of future demand is pessimistic. In the short term, domestic steel prices will enter the operating track of interval consolidation

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