The Rising Trend of China steel prices

Relative to the same period in 2012, the level of steel prices this year as a whole compared to last year were down 200 yuan / ton; peak of the first half of last year, steel demand for the release in late April to May, so it seems that this year should be according tolikely go with the original track; specific point of view, we believe that steel prices this month to usher in a real rebound, you may need to explore from the following aspects.

Enter mid-March, the market reaction turnover improved, but by the author's observation, the downstream buyers become very cautious, multi-demand procurement, rarely concentrated replenishment; description of this stage downstream sectors of the steel market has always held a cautious wait-and-see attitude. In fact, with the nearly two years since the global economic slowdown, the steel industry and downstream industry boom of the obvious fall in the raw materials and other cost control more strictly, the downstream industry is too concerned about the changes in the steel market, further forcing steel post cast more tangled. In this way, the actual demand if there is no real release, depends on expectations has been difficult to easily pry the big changes in the steel city.

From Steel Association released the latest data show that until the end of the end of March, the key steel enterprises internal steel stocks fell about 800000-13700000 t, amounting to ten days for the first time to drop, while at the same time last week, the social stock of steel continuous the third week dropped to 21.62 million tons; inside and outside the steel stocks double down; greater amount of end demand for the release. Ching Ming Festival, this acceleration to the inventory may further increase the high probability event. So for a long period of "price depression" steel market, pull up the grounds, after the festival, sufficient to illustrate this point, the businesses active pull-up will significantly enhance the performance of the market.

From the General Administration of Customs recently latest data show that in March China's steel exports 5.28 million tons, an increase of 4.97%; 1-3 months of total exports of 14.43 million tons of steel, an increase of 18.8%. In March, China imported 1.23 million tons of steel, down 3.15%; 1-3 months of total imports of 3.23 million tons of steel a year-on-year decline of 5.3%. In March, China's imports of iron ore was 64.55 million tons, an increase of 2.67%; imported a total of 186.48 million tons of iron ore in 1-3 months, unchanged from the same period last year. - March, China's steel export volume is the highest since 21 months, the focus is also broke the 500 million tonnes mark.

Generally speaking, China steel prices will have some changes in this month, but the key factors should be decided by the trends of economic. And we can be sure, according to the rising of economic, the demand of steel will rise, like steel plate, steel coil, galvanized steel, and galvanized angle iron will get more demand in the next month.

The Trend of China Steel in 2013

In view of the above analysis, China steel market can usher in growth, supply and demand in the degree of development remains to be seen. Short term, with the weather gradually gets warmer, the demand for slow release in early April will usher in a wave within a narrow range rebound, but the magnitude will remain limited, and in late still need to pay close attention to the latest trends of the market regulation. New "urbanization" policy, as China's economic growth momentum in the next decade, yet it remains on a conceptual level, only to various rules, the planning and the gradual introduction of the Steel City real good, in addition to all around the island announced details of the five countries bearish steel City, may still lead to early April to pick up market push.

Inventory, with the continuous release of the production capacity of China's iron and steel industry, the history of the highest point of the steel inventories continue to be refreshed, and the stock lowest point is gradually climbing, especially experienced for a long time or later in the macro side early positive superimposed boosted, inventory since 2009, the most visible and lasting rise, as of March 29, according to the statistics: Shanghai rebar inventory of 440,400 tons, an increase of 0.94%, a decrease of 0.3% last week; 485,000 tons Guang zhou MoM decrease of 7.62%, a decrease of 2.05% last week; 937,800 tons Beijing, a decrease of 2.4%, an increase of 1.67 percent last week; wire stock of 66,000 tons, an increase of 0.92% from last week, an increase of 4.64%; 478,000 tons Guang zhou MoM decrease of 11.32%, an increase of 0.56% last week; 92,500 tons Beijing, a decrease of 7.04%, an increase of 1.12% last week.

From sheet plate， as of last week, the domestic steel inventories finally emerged decline, but the plate decline rate has been relatively limited. Hot rolled coil and cold rolled coils inventory reduction of 3.9 million tons and 1.5 million tons respectively over the previous week; inventory of hot rolled coil, Wuxi market reduced by more than 3 million tons, is to reduce the most obvious market. The Tianjin market stocks also fell more than 10 thousand tons; Shanghai and Shenyang market increase of more than 10,000 tons. Little change over the stock market of cold rolled coils. This shows that the downstream industry demand is not great on the plate.

The demand side, while social stock rising demand for the release, but it falls short. Since March, the terminal site gradually return to work, steel demand release, but still significantly limited compared with a high level of inventory, the market destocking willingness markedly effective urgent. Macroeconomic data from February, however, the domestic economy is bottoming out and steady growth trend has not changed, but is still in the running state of sub-health and stable price policy of the central bank and the new "the country five" extremely rules promulgatedunder, the downturn in the steel city, once again increasing the pressure.

Overall, construction steel prices north and south of quite different, North China needs better rebounded pileare offer, the southern region due to continued sluggish demand continues to shock fall; and steel plate, hot-rolled steel market continued to fall, the market traded at its lowest ebb, cold rolled coils stabilize, plate steel steady downward. According to market monitoring: As of closing, 25mm two threaded average price of 3,654 yuan, more than last week, down 32 yuan; 25mm three threaded an average price of 3,703 yuan, down 30 yuan; 6.5mm high line price of 3647 yuan, down 82 yuan ; 5.5mm hot-rolled average price of 3,845 yuan, down 96 yuan; 1.0mm cold-rolled average price of 4,886 yuan, up 2 million; 20mm plate average price of 3,843 yuan, or 24 yuan.

China Steel Prices Market

Demand for the release of the steel market is slowly picking up, the rate of increase is slowing steel inventories, which led directly to the spot price of construction steel to become stable after crash. According to the latest market report provided by the relevant agencies, the China steel  industry has been the basic pattern of demand and upstream costs squeezed at both ends, there is no change, and some steel mills have recently stepped up the intensity of the overhaul and cut.

According to the monitoring, Shanghai construction steel prices stabilized stabilized. Currently, the two rebar on behalf of Shanghai Zhipin specifications tons price of around 3,640 yuan, week, up 10 yuan; Shanghai quality product the three rebar offer in 3670 yuan per ton, up 10 yuan a week. Steel futures market, according to market participants reflect once quickly soared, led to the outbreak of the spot steel city needs some steel trading business even exaggerated, "limited" operation. But soon the trend of steel back to the shock trend, the spot steel ShangXi the procurement initiative also significantly affected.

Previously, some steel parts dealer tense relationship with the steel mills, attracted the attention of the industry. Current point of view, the new changes in vendor relationships, pricing decisions of the steel mills have a certain impact, steel mills considered more cautious. Anshan Iron and Steel Company has recently introduced a plate prices in April, the ex-factory price of the mainstream varieties such as hot-rolled-steel, cold-rolled-steel and steel coil 100-300 yuan per ton dropped significantly, could mean sheet manufacturers raised prices since last December cycle has been completed. Building steel mills latest pricing, although the direction is not exactly the same, but the "stability" putting the word is a common choice.

Fluctuations in the trend of rising last week, the price of the domestic construction steel market is around the higher prices, some cities rose to one hundred yuan, pull up too fast and then fall, but Wednesday, Thursday, rebar futures prices, electronic high lineprice is continuously rising prices rebound again. Last week over the price of the overall slight rebound, the overall turnover was acceptable in parts of the stock began to digest the signs, and played a supporting role in the price rebound. With the weather warming, the demand continues to pick up, the overall market turnover of the situation will continue to improve in most parts of construction steel inventory next week will be open to the inventory process.

From the last week the overall trend in the steel market, construction steel, hot-rolled coil, galvanized steel coil, plate and other varieties of part of the area offer finished lower. According to the China Iron and Steel spot network statistics show that, as of March 22, the 10 major cities in two Φ25mm rebar price was 3,686 yuan, up 16 yuan over the same period the previous week, 10 major cities Φ6.5mm high line an average price of 3,656 yuan, up 22 yuan over the same period the previous week. 10 major cities 5.5mm hot-rolled coil average price of 3,941 yuan, more than the same period last week $ 44 up. 10 major cities 1.0mm cold rolled coils average price of 4,884 yuan, down 7 yuan than the same period last week, down 78 yuan over the same period last month.

Steel Prices Trends from China

According to the latest market report, in March, more than half of the release of the downstream demand is still "slow" trend of the ups and downs of China steel prices, will directly affect the the spot steel city merchant mentality.In the past week, the major varieties of steel spot prices generally fall varieties weekly decline in more than 1%, which showed a larger hot-rolled steel.

According to the analysis, in the steel sheet market, the price decline has deepened.According to the review of the professionals in the market, the current round of steel price decline continued to the present, the domestic plate prices have fallen for 15 trading days from late February. Baosteel Plate April ex-factory price increase, but the price movements in the spot market are not with the formation of a "synchronization" effect, pessimism spread. This is mainly due to the downstream demand the release of poor, the complexity of the mentality of buyers, the rising steel trading business under constant pressure, shipped arbitrage willingness. Hot rolled coil decline is even more evident, Shanghai, Hangzhou, Jinan price weekly decline in the 100-190 yuan. Upside down and spot market prices due to higher pricing of some of the leading steel mills factory, serious, even if the margin constraint, a loss of serious traders or no choice but to give up to continue the implementation of the procurement plan.

Steel raw material prices also fell overall. According to related reports provided by the relevant agencies, the continued strength of the iron ore market, and finally transferred to the accelerated downside track. Ore in the domestic market in Hebei iron concentrate prices continue to fall, a weekly decline, t price of $ 20, the steel mills purchasing more cautious maintain low inventory strategies, thinly traded market. Imported ore prices fell sharply, 63.5% grade Indian iron ore fines Quote $ 134.5 per ton, down $ 13.75 a week; Platts 62% grade iron ore index of $ 133.75 per ton, down $ 13.25 a week. The Mine City market outlook is expected or downward trend, most of the buyers have fewer choices procurement.

Many factors affecting the iron ore spot market. Bureau of Statistics data show that the first two months of China's average daily crude steel output was 2.1263 million tons, the highest of the highest level for the same period in history, a high level of crude steel production, a huge inventory of steel oversupply further exacerbate the contradictions for more pessimistic steel prices, coupled with the introduction of the property market regulation and control of the five countries ", again stir around the real estate market, and in turn have a negative impact on the steel industry. Beijing International Mining Exchange believes that the downstream industry the continued bearish conduction to the spot price of iron ore, triggered last week's rapid decline. Short term, this downward trend will continue.

Overall, the volatility of the steel market in China is still getting bigger, and now is the national series of policies and implementation of a critical period in the mechanism of state regulation, the China Iron and Steel must carry out reforms in order in the world steel occupy a more favorable market low. Whether it is a large demand for hot-rolled steel and cold-rolled steel, the demand for middle-level galvanized steel, aluminized steel, as well as a triangular steel, etc., and their prices will in a reasonable price range.

The Development of China steel

Recent data shows, State five rules promulgated led to relatively large fluctuations in the steel market, traders depressed mood, the market purchases enthusiasm weakened, closing the atmosphere is poor. Construction steel sheet products have appeared slipped sensitive hot rolled steel price decline.

Generally speaking, Domestic major cities Ф25mm three rebar average price of 3849 yuan (t price, the same below), compared to 4 or 6 yuan; the domestic key cities Ф6.5mm high line an average price of 3,718 yuan, compared with $ 4 or 4; domestic prioritiescity ​​5.5mm average price of hot rolled coil is 4013 yuan, down 37 yuan over the 4th; 1.0mm cold plate of the domestic focus of the central city average price of 4,939 yuan, compared with the 4th down 6 million; the domestic key cities 20mm plate average price3953 yuan, compared with 4 or $ 18.

China's GDP growth target this year as well as the increase in CPI of view, stable growth, control inflation is a main tone, means in the context of the loose global liquidity, China's policy-oriented under the premise of stable growth to prevent inflation rise will not sacrifice everything in order to maintain growth. Then for the steel market, in in financial effect amplification push up the price of rising channel, but also consider the needs of the Chinese entity performance, pull the power in the market is affected by the cost factor in the case of rapid increase in inventory, demand starts slow, weak people in the short term, steel prices has yet to reverse the signs of elevation. But the demands of the market holding stability has been strengthened, the steel city today is expected to gradually stabilize.

Factors affecting the domestic construction steel market, mainly the following aspects:

One is the leading steel mills steady mainly. The domestic steel prices shocks down, not many steel mills to adjust to the ex-factory price. Hebei Iron and Steel, Shougang Changzhi guide price of early March raised by 100 yuan / ton, while the East China Shagang rebar prices flat in early March, the whole month of February making it up 100 yuan / ton. Overall, domestic steel prices and market prices generally upside down, but at the cost pressure of circumstances, steel mills offer more to maintain strong price making it up are more limited.

The second is the majority of the raw material prices down. According to the monitoring data show that as of March 1, the Tangshan area carbon billet price of 3250 yuan / ton, down from Friday 50 yuan / ton; Jiangsu Province scrap price of 2900 yuan / ton, unchanged from Friday; Shanxi coke price 1470 yuan / ton, unchanged from Friday; taste dry Tangshan area, 66% iron ore price of 1170 yuan / ton, down from Friday 20 yuan / ton. At the same time, the external disk offer grade 63.5% Indian iron ore fines of $ 152.75 / ton 2.75 U.S. dollars / ton, down from Friday.

Third postganglionic steel stocks continue Masukura. According to the monitoring data show that as of March 1, the major varieties of steel inventory total of 21,583,600 tons, weekly chain Masukura 6.78% inventory increase has slowed compared to the previous two weeks, the downstream demand this week must start signs. Now, the total social stock has the same caliber of year-on-year increase in more than 1 million tons, and has hit a record high level of general annual inventory and more experience Masukura 4-6 weeks and then transferred to the downstream channel, so late The destocking task is arduous.

Of course, China policies will make some affect on China steel market, especially, steel prices will be affected. And according to internal prices of steel, the China steel prices will have a proper level.

China cold rolled steel

In February, in China, the market price of cold rolled coil to the rising main. February 28, China's major cities 1.0mm cold plate an average price of 4952 yuan (t), up 111 yuan from the end of January. Shanghai, Tianjin, Beijing 1.0mm Omo box board market price of 4860 yuan, 5050 yuan and 5100 yuan, or 170 yuan, 100 yuan and 100 yuan. The other second-tier market price or 60-170 yuan.

Cold rolled steel prices rise, there are mainly two reasons; the one hand, a further rise in steel prices cost more sturdy supporting role. Businesses hoard, on the other hand, a very few, limited resources, market liquidity, resulting in fewer cold-rolled steel products, but prices continue to grow. For Spring Festival is expected to once again good psychological fermentation postganglionic the inertial pull up the role, the pace of rising market prices before and after the Spring Festival has never stopped.

Specifically, the following prices up in February, the domestic large steel mills in the mainstream again blew the horn rose. Especially early in the New Year's Baosteel will surprise the first to raise the price policy in March after the holiday, other steel mills raised prices well ahead of preheating. Indeed, after the Chinese New Year, Shougang, Angang Steel new one price policy have to implement, the March cold rolled rises in 200-250 yuan. The Hebei steel of cold rolled steel producers will also follow the trend of price increases policy, the latter part of the cost of supporting a further consolidated. Just has not been started due to the the postganglionic downstream demand, the price after a space up Xuzhang power tends to weak businesses mainly changed to a stable and a wait-and-see, expected real market revitalization in about 3 months late.

On the other hand, during the Spring Festival market resources around the part arrival, but the arrival of relatively limited, only a few cities in the bulk arrival. Moreover, some steel mills busy exports, a decrease in the amount of domestic resources. However, businesses hoard goods, stocking seek and secure the relatively rare a large number Dongchu operations. Therefore, after the Spring Festival, the market resources is small there is a growing, but still at a low overall inventory. The salable few resources, support a certain price. But if the latter continue to add resources, demand start slow price "late spring" may only adjustment will be more limited. Late start gradually, demand and prices are expected to return to a rising channel.

According to the previous experience, each year, in March and April, is the the downstream demand gradually start of period. With the weather warming, the downstream procurement will gradually start to recover, and then one after another active this year, the pace of urbanization is a "policy year" downstream producers overall than last year's strong vitality, is a good cold rolled steel market. The overall market is expected to occur in March and April, a "peak", downstream needs to start in early March or significantly slow the true sense of the market recovery is a process, not small adjustments to exclude individual time period.

Getting Most Comprehensive Steel Information

The steel industry has hundreds of years history all over the world, following the quick development of high-tech, steel have divided into all kinds of styles to satisfy different demands for almost industry. Whatever China Steel or other countries steel suppliers, having formed a relatively mature industry chain. The below we will provide you some popular steel information to help you learn the latest steel products.

Firstly, I recommend you to know angle iron better. Commonly, angle iron is known as on both sides perpendicular to each other into a corner of the bar of steel. And it is divided into equal angles and unequal angles. According to the different structure needs, angle iron can compose of a variety of different force components, and also can be used for connections between the components. Certainly, angle iron is widely used in different building structures and engineering structures such as beams, bridges, transmission towers, hoisting and conveying machinery, ships, industrial furnace, reaction tower, container frame and warehouse shelves, etc. In addition, angle iron belongs to a simple section of carbon structural steel, which is mainly used for metal components and framework of the plant.

Secondly, there is a kind of vastly using steel----steel channel, which is a cross-section of the groove-shaped strip of steel. According to different categories, steel channel is divided into different styles, for example, via the different shape, it can be divided into four kinds: Cold equilateral channel, ranging from cold-formed side channel cold-formed Lipped Channels, cold-formed outer edge channel. And the applying of steel channel is widely, generally, it mainly used for building structure, vehicle manufacturers and other industrial structure, specially, steel channel can be used in conjunction with h beam.

Thirdly, Prepainted Steel is a special steel, which is made from cold rolled steel and galvanized steel with surface chemical treatment after coating or composite organic film, then bake curing. Therefore, prepainted steel not only owns the performance of steel material high mechanical strength and easy to shape, it also has good decorative coating materials and corrosion resistance. And it respected as today’s world new materials and get more and more wide using. Usually, prepainted steel is used in building, appliances, electrical and mechanical transport, indoor decoration, office furniture and other industries.

Finally, ERW Pipe just is Electric Resistance Welding, which is different from ordinary pipe welding process, and erw pipe is is made ​​by the parent material of the strip body melting, mechanical strength than the average pipe. Usually, ERW said resistance welding, resistance welding has high production efficiency, low cost, material saving, easy automation features, it is widely used in various industrial sectors of the aviation, aerospace, energy, electronics, automotive, light is important welding processa. And ERW Pipe is also used to transport oil, natural gas, to meet the high and low voltage requirements of the conveying pipe in the world sector accounts for a pivotal position.

Via the above some related steel product instruction, we can know that steel industry plays so important role in whole industry development. Although, now steel prices have great difference from before, the quality of steel is getting better, and all sorts of special steel products can satisfy more range demands.