Steel market situation in China

Recently, the domestic steel spot market to pick up slightly, but the demand side is still a lack of strong support. The performance impact of each macro side fundamentals, China steel prices will be back shock pattern.

According to the monitoring, the domestic spot steel prices being "first growth and stable". Last week, affected by the good news of the macro side, the steel market confidence has been boosted, and steel prices generally rose slightly. However, due to the deep-rooted Steel City "off-season" effect, rising steel prices and lack of demand for support, the price of steel products stabilized again.

According to the analysis, in the sheet market, the overall situation is a sign of strength, reversing a previous downward trend, however, the Wuhan individual market is still slightly dropped. The market analysts believe that the macro data show that the economy has been warmer, the capital market is also strong, which boosted the confidence of the steel market. Steel plate prices with the potential to rise, but "high" shipments rose difficult. The weather is getting cold, the downstream steel enterprises procurement reduce the total demand is weak, or the more obvious. Also the consolidation of hot rolled coil prices stabilized, the dominant trend of the market has been divided, the Shanghai market is basically stable, Tianjin, Beijing and other manifestations of decline. Even up areas, the businessmen's willingness to raise steel prices are still relatively low. At a time when the year-end season, merchants repayment pressure greater surface tension of funds, large-scale "stockpile" phenomenon is unlikely to occur.

In the construction steel market, overall prices were slightly up. However, with the northern part of the region once again snowfall, the downstream demand is further suppressed, the turnover of the steel will be blocked. Think some steel trading business, taking into account the prices of raw materials such as iron ore, steel billets is still strong, the other specifications of the individual market segments less resources, and the bottom of the construction steel market there is still some support for limited downside, in short term, steel prices are still vulnerable fluctuations.

Relevant agencies said that some downstream industries of steel began to exhibit varying degrees of signs of warming, which is more or less conducive to the increase in demand for steel. But it must be remembered, steel prices have been more than a year of decline, businesses lingering fear, more cautious mentality, plus funds face superimposed adjustment factors, the China steel will continue to maintain a weak state.