subject: Steel Price Increase Is Only Short-lived [print this page] Since beginning in late April, nearly 100 days, the domestic steel prices have been showing a trend of oscillation decreased. But the recent emergence of the large steel products prices starting from July 20 the market price of steel around the country have more up there a collective situation.
The industry believes that steel prices are now rising circulation performance of a technical bounce, is long-term suppression of pull-up mentality focused on the release of results. Because the lack of fundamentals supporting the market rally, rally may occur beyond the expected short-term, so the experts suggest that market participants do not follow the trend of bargain-hunting. Currently imports of ore port stocks up to 72 million tons, with steel stocks were higher, most of the cost of steel in the next line wandering up steel ore sure to follow up, but the follow-up is limited, short-term steel prices difficult to have Great performance.
Although there EADS were mixed across the country, but the market volume does not change much. The industry analysts that the current bull market is a sure they market, about a week later, everything will be fever. Recently, the domestic steel prices continue rising. One hot-rolled sheet price gains gradually slowed; cold plate market prices within a narrow range own run trends; plate prices extended gains before; plating slightly higher market prices; strip prices continue to rise; pipe prices EADS were mixed signs, seamless prices remain stable, profiles the market continued to rise. Stainless steel and pig iron market specific price changes as follows:
Stainless steel market: recent spot market prices of domestic steel outlet slightly higher, or more than 100 yuan / ton. Major domestic stainless steel producers will continue before the August price cut insurance policy, traders worried that it would not be sufficient to enable the market supply is more "stretched." The spot market price of the domestic stainless steel showed a slight rise in market transactions, the general situation, but trading has been active in the atmosphere. As the steel mills cut production after another, leading to trade market resources and a shortage of some phenomena of stainless steel; the same time, the recent market prices have been relatively strong in the overnight London Metal Exchange rose after nickel prices, stainless steel prices rise, most of the traders out of stock, difficult to offer accurate spot prices. Although the steel in 67 consecutive cuts, the effect has been gradually emerging, but the support is insufficient because the downstream demand, the current wave of price increases is only short-term correction, its impact on the overall market is very limited.
Pig iron market: domestic market prices of pig iron a general increase in area, or are less than 100 yuan per ton, a slight change for the better contract conditions, less inventory. Recently raised some domestic steel prices related to steel, billets, both the rise of domestic ore, the market dropped nearly three months in a row after the rebound phenomenon in some areas, with the futures market rebound, rising spot market also appeared price behavior. Some industry insiders believe that the market is not able to last long, should be a technically oversold after the repair, and the prices still further development of continuous observation. As the domestic pig iron market has shown gains related products rose 50 yuan / ton to 70 yuan / ton, a slight change for the better conditions of transactions, inventory decreased significantly, traders purchase slightly positive, combined with some of the recent varieties of steel steel prices have also rose slightly, resulting in oscillation of pig iron market, but some of the industry is not optimistic about market's persistence.
In summary we can see that, although the overall rise in steel prices the situation there, but most people think that the downstream demand and there is no fundamental change for the better, this price increase may be short-lived. Therefore, the textile machinery manufacturers also durability patience and not to large reserves of raw materials of steel, while steel prices are likely to decline after the market.
