China Steel Information

The last day before the holiday, the nation's major market steel prices unexpectedly comprehensive stabilize run, the market mentality is basically in a peaceful state. According to market monitoring: As of the close, the average price of 25mm rebar 3614 yuan, down 20 yuan from last Friday; 6.5mm high line average 3564 yuan or 16 yuan; 5.5mm hot-rolled average price of 3,710 yuan, down 37 ; 1.0mm cold-rolled average price of 4,807 yuan, down 24 yuan; 20mm plate average price of 3,754 yuan, down 26 yuan.

This week, the domestic stock market fell nearly 3%, steel futures prices fell more than 2%, leading to poor market sentiment. Despite the recent market turnover situation has obviously improved, according to statistics the country's 29 major cities in construction steel, hot-rolled coil, cold rolled coil, plate the total inventory on the decline, but still high inventory levels of all varieties, businesses pressure is still large, strong willingness to return the funds by demand season, pay close attention to the shipping, very price and even pull up the price of power shortage. Short term, although shipments will continue to be maintained at a high level, 51 postganglionic stock will continue to decline, but the premise of the high-yield, for the subsequent arrival of resources concerns, a single from the spot market level, it is difficult to pull prices rebounded significantly. Poor economic conditions, unless the country has a more powerful stimulus policies we mentioned before, Hebei began efforts to cut one-third of steel production capacity policy implementation, the steel market will have a turning point.

This week, the the prices of sheet metal market of domestic continue to slightly lower, especially is the hot rolled steel plate volume Product Price, the of its financial property is the strongest, to follow the steel futures, the trend of the in the long-term electronic disk Price is the more obvious, decline is also of the relatively large. But the all over the, of all varieties sheet metal decline in the prices of compared to with the last few weeks has been distinctly narrowed from the, This with the that have a great relationship on the the heavy volume of of the demand. Week of hot-rolled coil, cold rolled coil, plate stock declined.

Labour Day, the overall level of demand is still expected to continue to enlarge the sales of businesses still remain at a high level. But now higher than the same period last year about 20% of the inventory levels, the formation of a greater pressure on the dealer, so that the price level is difficult to significantly improved. However, if the domestic stock market, steel futures market prices after the holiday can rebound, the stock market there may be some improvement. In a two-day weekend, the domestic stock market, steel futures, electronic trading are not opening, the all varieties spot steel prices have remained stable. But greater impact on of the steel billet Price the trend of the spot price goes low continuously in the weekend two days, the two days of the cumulative decline in reached 40 yuan, As of press, the Tangshan region Carbon 150 billet Price for the 3.16 thousand yuan, reached a the the lowest level in in the this year after the Spring Festival. From the billet market trend during the holiday season, the Festival steel spot market is still not optimistic. The domestic steel market wants to get rid of the dilemma, but also the national macro-stimulus force to appear. There is also a way out is the the domestic steel mills be able to take the initiative to of the. These two from the the the the current signs of point of view, the short-term within the both the difficult to achieve. However, there are a little might be interested in the latter part of the market trend the formation of the policy of the important influence in the we need to focus. Recent media reports, Hebei will be a 1/3 cut in steel production capacity. Mainly is out of to the environmental considerations, the use of the environmental protection means to achieve the abatement of the steel production capacity. In in 2012, the Hebei crude steel production 1.8 billion tons, the average monthly 15 million tons, minus 1/3 is the 5 million t. We need to focus efforts in May this policy implemented and the specific implementation, if you really can have this amount, the market will change, the market price may rise significantly.