Hunan Steel Industrial Zone, No.9 Xiangfu Road, Yuhua District, Changsha, China
In November, rising steel prices have already beyond the forecast of the market. In the first week ,the billet price rose to 2410 yuan/ton from 2310 yuan/ton, rose has been flat. The expert thinks, although in the short term profiles continuously to create the market high price, but the end market is quiet. Supply and demand strength obviously, there is no signs of reverse. Affected by this, the ex-factory price of steel board, welded steel pipe and galvanized pipe product increases slightly .
Upstream steel billet market well, despite difficulties, high-end output down still failed to resist the unscrupulous up sound. The rise in prices power derived from the role of coke and coal, raw material supply tight support market movements, set tone on strong in the market. Profile market to maintain a certain profit space, prices must remain strong, the main reason is the cost of production is on the high side was forced to pull up. In such circumstances, to buy or not to buy up high, the market clinch a deal, the daily turnover reached new highs, driven market goods, inventory reduction was logical.
Each government has been released to production task and plan, the cumulative current plans out crude steel output is 200 million tons, so it seems, is more than 2016 annual production capacity to the task, the 3-5 years large task planning under the state council has put in place, later as long as the supervision can be removed. Actually now steel prices rebound, in the case of lack of demand for support, market to buck the trend, the power of distributed, is also to capacity, etc. The results of good news.
The recent rebound, steel and coal prices is to the effect of capacity. Environmental pressure, factory operating rate is low, steel production is reduced, traders digested its proper procurement, inventory and inventory in a suitable range, and the price formation, fully staffed, what is there against it.
From long-term consideration, profile market movements should be rational, gradually return to rational prices. Cost gains lead market rising trend should be slowing, after all, only have demand ,then have the market. Quick buck's attitude is not desirable, rapid ascent will only make the downstream produce psychological resistance, calm down and then move forward is necessarily.
As a result, the factors influencing material inventory is more, later may have upside, reason: 1. Power than before to slow the rise in material market, clinch a deal on slightly stalemate; 2. The trader's price mentality is abate, cause high shipments blocked; 3. The end market weak hard to change, attitude in procurement and elimination. If the raw material market continued to rise, late profile market road will continue upward, steel springboard, welded pipe, galvanized pipe, and other products factory price will continue to rise, but won't have too big decline in inventory.