Discussion and Analysis on the contradiction betwe

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The contradiction between supply and demand in the steel market may reappear discussion and analysis

high steel output and lack of corresponding coordination in trading volume immediately restricted the once rapid upward steel price. According to the latest market report provided by "my steel", a well-known domestic steel information organization, the domestic spot steel price has fallen into a consolidation dilemma for two consecutive weeks. I want to invest that the current steel market consumption is gradually entering the off-season, and the contradiction between supply and demand may reappear

the domestic spot steel price is still in shock, and the price trend of major varieties is slightly differentiated. The consolidation of the construction steel market is weakening, but the plate market is slightly stronger in stability. The overall situation of the steel market is that the transaction is worse than that in the early stage, but the supply of individual resources in some markets is tight, and the latest ex factory pricing of some leading steel mills has been steadily raised, which has supported the successful commissioning of the elongation gasifier of the 300000 ton ethylene glycol project of Zhongyan hongsifang in the spot steel price, and the willingness of individual merchants to increase is also relatively strong. However, due to the high output of steel and the lack of coordination of trading volume, it is still difficult for steel prices to break through the consolidation dilemma that has lasted for two weeks

in the plate market, the price is slightly stronger in the shock. The price of medium and heavy plate is relatively strong, and the ton price of medium and heavy plate in Shanghai, Tianjin, Beijing and other regions has increased by 10 to 80 yuan. The relevant expectations of the market improved slightly, and some dealers showed a certain reluctance to sell. However, most markets are still in a stalemate, social inventories are generally low, downstream demand continues to be weak, businesses are unable to rise sharply, the willingness to reduce prices is not high, and the wait-and-see mood is strong. Driven by the forward price, the spot price of hot-rolled coils also tends to be stronger, but the downstream demand is still relatively light, and the preferential tax policy implemented by the terminal is less than that implemented by the Rhodes Special Economic Zone, which is an important treasure to attract foreign investment

in the construction steel market, the price weakened in the consolidation, and it was not until the weekend of the recent week that the price in some markets rose slightly. At present, the pattern of the domestic leading market is "weak in the South and strong in the north". The prices of raw materials such as iron ore and steel billets are still slightly consolidated, and the ex factory pricing of the leading steel mills has increased steadily, which has a certain support for the current steel price in terms of cost. However, the market turnover is worse than that in the early stage, and it still needs a process to transform the start of "stable growth" infrastructure projects into corresponding steel demand, and it is impossible to "achieve immediate results". In addition, the steel industry has serious overcapacity. Once the steel price rises, the production capacity of up to 900 million tons will be released, which will immediately restrict the spot steel price. In mid October, the daily output of crude steel in China climbed to a record high of nearly 2million tons

Analysts of relevant institutions believe that with the advent of winter, the downstream demand for steel is bound to gradually weaken, but the enthusiasm of some steel mills to resume production is very "high", and the contradiction between supply and demand in the steel market may appear again. At present, the operating rate of blast furnaces in some major steel producing areas in China is gradually increasing, and some maintenance blast furnaces in the early stage will be put into production one after another. The previous round of rebound in domestic steel prices has come to an end. It is estimated that the steel market at the end of the year will show the characteristics of "price weakening in stability, steel production declining in stability, and social inventories recovering significantly"

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