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Shanghai construction steel prices: demand release far lower than expected
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Shanghai construction steel prices: demand release far lower than expected

Classification:
News
Author:
Source:
2010/05/29 14:19
[Abstract]:
According to the domestic well-known steel spot trading platform "xiben Shinkansen" to provide the latest market analysis, Shanghai construction steel prices fell continuously, a weekly price drop of 230 yuan, hit this year after the Spring Festival of the most decline.

According to the domestic well-known steel spot trading platform "xiben Shinkansen" to provide the latest market analysis, Shanghai construction steel prices fell continuously, a weekly price drop of 230 yuan, hit this year after the Spring Festival of the most decline. East China a few mainstream steel mill roll out rarely "depreciate + favourable" ex-factory price policy. Demand release is much lower than previously expected, some traders holding a large proportion of high-priced resources estimated to have been in the "floating loss" situation, the market inventory to return to the track of increasing warehouse, the market bottom process may continue.

 

According to the "xiben Shinkansen" monitoring, in the recent week, Shanghai construction steel prices fell continuously, a ton of weekly drop of 230 yuan, a record since the Spring Festival steel prices fell the most weekly. At present, Shanghai high quality secondary rebar product specifications on behalf of the product ton price adjustment to 3950 yuan around; High quality three rebar price is also adjusted to 4020 yuan per ton. Historically, may was supposed to be the peak season for consumption in the steel market. In the past five years, it was a pattern of "three rises, one flat and one fall". But this year the steel city of may, estimation has rise hard.

 

According to relevant market analysts, Shanghai construction steel demand in May also failed to bring any support to the market after the sales volume continued to decline in April, and in this week's steel prices fell across the board, the demand is falling to the bottom, not only the intermediate demand significantly shrink, end demand also consciously slowed down the pace of procurement. Shanghai construction steel inventory after six weeks of continuous reduction since the end of the year, is now back to increase the inventory track, the relevant inventory is still in a high consolidation state, and a considerable proportion of the inventory structure is the high cost of resources after march, which also means that some businesses have been in the "floating loss" situation.

 

According to analysis, the "cooling" of the market has had an impact on steel mills. Baosteel steel prices in June out of all "flat"; East China shagang latest round of ex-factory price policy is a rare "per ton fell 300 yuan to supplement 300 yuan" disk, in addition to south China's guangdong steel, shaoguan steel bar line prices have been cut. But even so, there is still "upside down space" between the factory price and the market price, and the game between dealers and steel mills will continue. At present, the spot price of construction steel has been close to the cost range of some steel mills. Under the pressure of cost, some small and medium-sized steel mills will show signs of production cuts. As for the steel raw material market, although the drop in spot steel prices than much moderate, but generally depressed transactions, both supply and demand are wait-and-see. At present port traders iron ore prices chaos, there is no lack of signs of dumping.

 

Market participants predict that the law of "buy up do not buy down" will be fully reflected in the next steel market, whether terminal demand or intermediate demand, will be in a wait-and-see state; The recent sales of steel mills is also difficult to say optimistic, if the weak trend of the overall market to maintain, raw material prices will also have "fill down" space; In the secondary quality steel rebar 4000 yuan "ton price pass" easily break, some traders have "panic bearish" psychology, there is a further sales drive.