Beijing construction steel, steel prices are expected to climb to enlarge stabilizing transactions - steel, construction steel, steel - steel industry

Beijing construction steel, steel prices are expected to climb to enlarge stabilizing

transactions - steel, construction steel, steel - steel industry

According to Lange Steel Information Research Center of the monitoring showed the market: just last week, Lange continued domestic integrated steel index fell sharply, down 13.7% week chain, fell to 140.1 points, the points are close to 1 in 2007 month. Despite the decreased still more, but I believe that early involvement in the prices of major slowdown in the downstream business needs. Postganglionic price decline was mainly due to increased pre-dealers holding off, no major positive stimulus in the market, the dealer mentality deteriorated due to rushed to sell cash. Therefore, the current decline in prices is due to dealers and manufacturers mentality led to panic selling, down a non-rational.

Out of this panic mentality to observe the steel market, we can see that although steel prices are still down channel, but there is also good news, if the stable state of mind of dealers and manufacturers, steel prices stabilized market has stabilized can be expected.

First, as the ongoing sell into corrections selling, the market volume is gradually enlarged. According to Lange Steel Information Research Center Market monitoring shows: Beijing Construction steel stocks have fallen in the last week than the week before by 3.3 million tons, down 262,000 tons, 11.2% reduction. This is a Beijing construction steel stocks continued to rise for 6 weeks the first time since fall. Decline in inventory levels reflects the market's volume just beginning to enlarge.

Second, the domestic steel prices continued after the collapse in 10.1, the next two weeks, the cumulative decline of nearly 30%, which sell under the auspices of the panic mentality will help drop the price of domestic steel market hit bottom earlier arrival time.

Again, my good macroeconomic fundamentals. International Monetary Fund (IMF) 8 predicted yesterday, the next two years China's economic growth rate will slow down, but growth was still expected to reach 9.7%, and 9.3%. Despite the slowdown in export growth by such factors, economic growth in China in the first half will be lower than the level a year earlier, but stable growth by promoting investment and consumption, the Chinese economy will remain vibrant.

In September, according to the manufacturing purchasing managers index (PMI) showed that in September PMI index at the end of the previous two consecutive months, less than 50% of the trend, rose to 51.2%, 2.8% higher than in August. The idea that PMI indicators rise in September reflects the regional economic downturn trend has ended.

In addition, real estate rescue measures have been put forward to stimulate the construction steel market steadied. Currently there are 17 local governments to include the purchase households, tax, housing subsidies and other measures to reverse the real estate market decline, boost the volume remains in the doldrums. Another source said, and Commerce and other agencies to develop a set of real estate "rescue" program, and turned over to the State Council, the policy introduced only to be the right time.

Although the U.S. subprime crisis spread to an increasing extent, but considering the growth in our area did not change economic fundamentals, demand in the steel becomes clearer in the case, the dealer mentality stabilize the market for steel price trends is essential. October 15 Hebei Iron and Steel Group introduced the minimum sales limit policy on the sale price below the dealer will not give any form of subsidies and implemented from November Proxy System sales model, breaking the previous outright distribution model, to some extent undermined the dealer pricing. The steel market pricing power of concentration will help the market price stability.

POST COMMENT

Common Questions on Raising Your Daughter What is Fuzzy Logic? Manute Bol dead at the age of 47 Canvas Awnings-Caring For Your Canvas Window Awnings Keylogger – the best tool to find the mal activities Phil Ivey Biography How Does an MRI Work A Brassing Activity Office Space Edinburgh Can Provide You With Flexibility In Terms 4 Ways To Get Your Opt In Subscribers To Trust You Quickly Bradcot Awnings-Why Are Bradcot Awnings So Popular? Six Pack Abs Pro Red Skin Spots