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.