Mar 10, 2013

The situation of China cold rolled steel in March 2013


In February, in China, the market price of cold rolled coil to the rising main. February 28, China's major cities 1.0mm cold plate an average price of 4952 yuan (t), up 111 yuan from the end of January. Shanghai, Tianjin, Beijing 1.0mm Omo box board market price of 4860 yuan, 5050 yuan and 5100 yuan, or 170 yuan, 100 yuan and 100 yuan. The other second-tier market price or 60-170 yuan.



Cold rolled steel prices rise, there are mainly two reasons; the one hand, a further rise in steel prices cost more sturdy supporting role. Businesses hoard, on the other hand, a very few, limited resources, market liquidity, resulting in fewer cold-rolled steel products, but prices continue to grow. For Spring Festival is expected to once again good psychological fermentation postganglionic the inertial pull up the role, the pace of rising market prices before and after the Spring Festival has never stopped.

Specifically, the following prices up in February, the domestic large steel mills in the mainstream again blew the horn rose. Especially early in the New Year's Baosteel will surprise the first to raise the price policy in March after the holiday, other steel mills raised prices well ahead of preheating. Indeed, after the Chinese New Year, Shougang, Angang Steel new one price policy have to implement, the March cold rolled rises in 200-250 yuan. The Hebei steel of cold rolled steel producers will also follow the trend of price increases policy, the latter part of the cost of supporting a further consolidated. Just has not been started due to the the postganglionic downstream demand, the price after a space up Xuzhang power tends to weak businesses mainly changed to a stable and a wait-and-see, expected real market revitalization in about 3 months late.



On the other hand, during the Spring Festival market resources around the part arrival, but the arrival of relatively limited, only a few cities in the bulk arrival. Moreover, some steel mills busy exports, a decrease in the amount of domestic resources. However, businesses hoard goods, stocking seek and secure the relatively rare a large number Dongchu operations. Therefore, after the Spring Festival, the market resources is small there is a growing, but still at a low overall inventory. The salable few resources, support a certain price. But if the latter continue to add resources, demand start slow price "late spring" may only adjustment will be more limited. Late start gradually, demand and prices are expected to return to a rising channel.

According to the previous experience, each year, in March and April, is the the downstream demand gradually start of period. With the weather warming, the downstream procurement will gradually start to recover, and then one after another active this year, the pace of urbanization is a "policy year" downstream producers overall than last year's strong vitality, is a good cold rolled steel market. The overall market is expected to occur in March and April, a "peak", downstream needs to start in early March or significantly slow the true sense of the market recovery is a process, not small adjustments to exclude individual time period.

1 comment:

  1. The salable few resources, support a certain price. But if the latter continue to add resources, demand start slow price "late spring" may only adjustment will be more limited. Late start gradually, demand and prices steel suppliers are expected to return to a rising channel.

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