Insufficient steel price rise momentum will maintain the concussion trend

Domestic steel prices have been rising in recent days. They did not slow down until the 12th, but the rally remained unchanged in the short term. The steel market's business sentiment was strong, but at the same time, the monitoring showed that the transaction did not follow steel prices. The rise of the two has increased substantially. China's well-known spot trading platform - China Steel Spot Network analysts believe that since the Ching Ming Festival, the overall steel market ushered in rise, in line with previous expectations, but at the same time, with five consecutive weeks of steel society inventory reduction, some varieties have become out of stock As a matter of fact, some merchants have a strong willingness to go bullish, and they have to wait until the market is closed. This is the most apparent reason why market prices and transactions are out of proportion in these days.
After the Ching Ming Festival, the prices of domestic electronic disks and futures steel prices have been rising. Such a good atmosphere directly stimulates the spot market prices. Some businesses even think that this is the turning point for the arrival of the peak season of steel consumption from March to June. The author believes that from the current market volume and the objective factors of long-term rain weather in the future, the steel price rise will be difficult to sustain. Before mid-May, the domestic steel prices should remain unchanged in the downward direction.

According to analysts from China's well-known spot trading platform, China Steel Spot Network, the mentality of the investors in the steel market is still unstable. Watching sentiment is strong. The general expectation of monetary tightening remains unabated, which suppresses the rising momentum of the capital market. Although the spot market for steel products is gradually improving, the growth of crude steel production has slowed down, and the growth rate of net steel exports has been accelerating. The supply pressure of the steel market has been reduced some time ago; inventory in the domestic steel market has declined for five consecutive weeks. The current trend of steel prices will form a certain positive. Under such circumstances, fundamental changes will not occur in the short-term volatility trend of electronic steel in the period.

In April, the traditional peak season for consumption in the steel industry will also be the key month for improved liquidity. However, from the viewpoint of various upstream and downstream conditions since 2011, the current environment of the domestic steel market has changed, and the overall situation has become "weak demand and strong demand," and the expectation of monetary tightening by market investors continues unabated. The financial situation is not stable. Although the prices of raw materials such as steel billets have recently risen, their support has been far less satisfactory than the current high steel prices. It can be said that the current domestic steel price growth momentum is still insufficient, and the market will continue to maintain its volatility.

The release of market demand requires a process, today's downstream steel industry orders decreased, the decline in market sentiment is basically a foregone conclusion, although the local housing industry is relatively supportive of the construction of affordable housing, but another major use of steel industry automotive appliances With the cancellation of preferential policies for automobile home appliances to the countryside, the decline in demand has become more prominent. Then the degree of release of terminal demand will directly determine the future trend of steel prices.

In summary, although the current steel price is in a process of turbulence and rise, but the concerns of the business have not diminished, the views of the market outlook are not the same, and some merchants take the behavior of sealing stocks in the current situation of rising steel prices. They are bullish within a short time or within a few days. There will also be a wave of gains. At the same time, the supply of some types of steel mills is insufficient, and the shortage of goods in the market is serious. While another part of the companies chose to actively ship, whether Baosteel's reduction in May's ex-factory price indicates a bearish outlook, but whether the steel mill's decline is a previous repurposing measure is unclear, and low-funded businesses choose to pay high prices. Shipment **, free up funds hope to gain something in the next wave of market. In general, the current steel market is relatively rampant. We have to make a judgment, the recent domestic steel price movements should continue to oscillate slightly.

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