The impact of domestic policies on steel in China

Recent data shows, State five rules promulgated led to relatively large fluctuations in the steel market, traders depressed mood, the market purchases enthusiasm weakened, closing the atmosphere is poor. Construction steel sheet products have appeared slipped sensitive hot rolled steel price decline.

Generally speaking, Domestic major cities Ф25mm three rebar average price of 3849 yuan (t price, the same below), compared to 4 or 6 yuan; the domestic key cities Ф6.5mm high line an average price of 3,718 yuan, compared with $ 4 or 4; domestic prioritiescity ​​5.5mm average price of hot rolled coil is 4013 yuan, down 37 yuan over the 4th; 1.0mm cold plate of the domestic focus of the central city average price of 4,939 yuan, compared with the 4th down 6 million; the domestic key cities 20mm plate average price3953 yuan, compared with 4 or $ 18.

China's GDP growth target this year as well as the increase in CPI of view, stable growth, control inflation is a main tone, means in the context of the loose global liquidity, China's policy-oriented under the premise of stable growth to prevent inflation rise will not sacrifice everything in order to maintain growth. Then for the steel market, in in financial effect amplification push up the price of rising channel, but also consider the needs of the Chinese entity performance, pull the power in the market is affected by the cost factor in the case of rapid increase in inventory, demand starts slow, weak people in the short term, steel prices has yet to reverse the signs of elevation. But the demands of the market holding stability has been strengthened, the steel city today is expected to gradually stabilize.

Factors affecting the domestic construction steel market, mainly the following aspects:

One is the leading steel mills steady mainly. The domestic steel prices shocks down, not many steel mills to adjust to the ex-factory price. Hebei Iron and Steel, Shougang Changzhi guide price of early March raised by 100 yuan / ton, while the East China Shagang rebar prices flat in early March, the whole month of February making it up 100 yuan / ton. Overall, domestic steel prices and market prices generally upside down, but at the cost pressure of circumstances, steel mills offer more to maintain strong price making it up are more limited.

The second is the majority of the raw material prices down. According to the monitoring data show that as of March 1, the Tangshan area carbon billet price of 3250 yuan / ton, down from Friday 50 yuan / ton; Jiangsu Province scrap price of 2900 yuan / ton, unchanged from Friday; Shanxi coke price 1470 yuan / ton, unchanged from Friday; taste dry Tangshan area, 66% iron ore price of 1170 yuan / ton, down from Friday 20 yuan / ton. At the same time, the external disk offer grade 63.5% Indian iron ore fines of $ 152.75 / ton 2.75 U.S. dollars / ton, down from Friday.

Third postganglionic steel stocks continue Masukura. According to the monitoring data show that as of March 1, the major varieties of steel inventory total of 21,583,600 tons, weekly chain Masukura 6.78% inventory increase has slowed compared to the previous two weeks, the downstream demand this week must start signs. Now, the total social stock has the same caliber of year-on-year increase in more than 1 million tons, and has hit a record high level of general annual inventory and more experience Masukura 4-6 weeks and then transferred to the downstream channel, so late The destocking task is arduous.

Of course, China policies will make some affect on China steel market, especially, steel prices will be affected. And according to internal prices of steel, the China steel prices will have a proper level.