Sino East Steel Enterprise Co., Ltd.

Steel prices downward momentum is waning Stop falling stabilization or not

publisher: camilla
time: 2014-05-22
on 21, the domestic steel prices continue to  fell down. Construction steel, hot rolled coil plate and heavy plate prices in the continuation, weaker market weakness to release, each finished product material price has a tendency to matches the year low. But in rebar futures, hot rolled coil plate plate under the direction of the shock wave red boost, market lower reduced operation, at the same time, some major areas become useful goods volume, or short-term suppress prices continue to fall. Raw materials, however, the weaker, slowing economic growth and yield of the high pressure pattern is difficult to make market effective changes. Iron ore futures prices continued downward, since listing in yesterday is listed in the since low and broken under 700 yuan to 695 yuan, and the price of coke is also continued weakness, this could reduce the production cost of steel mill, in the fierce competition, the market profit difficult cases, lower cost will be finished product material price is very good biggest constraint. And introduced the new issue of steel pricing tone, stability of late have a drop policy adjustment also make business to market expectations remain pessimistic, the weakness of the market structure or depressed sentiment, difficult to change effectively. But steady growth policy and some of the micro stimulus sent as well as the steel prices continued to trim after inoculation of small pumping power, makes the adjustment of the hong kong-listed still exist certain support power, after ore price below 700 yuan, steel mills are subject to the demand of the mining enthusiasm is not high, but for the ore price continue to lower the space is little, and from the perspective of history, our steel prices in approaching the previous low or a slow recovery in the great cycle, under the situation of market price of every valley value or will gradually move up trends, meaning before approaching low, buying is increasing, and the market price of operation is more and more weak, form a kind of support for the price. From now, in the collection order during the period of pressure, steel prices will continue to deduce the weakness of the pattern, but later gradually falling stabilization on the sidelines or have not.

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