Trend Forecaster

Trend Forecaster

New Year's steel strip remains variable recent trend forecast

Since last week, domestic strip market trend of continuous decline, while the Prices continued to fall, not only breaching the lower reaches of the public to encourage, but to "not buy or you buy" under the influence of the mind, making the situation more light strips market. The flow of the Spring Festival, less than one month, and strip for the holiday trend is increasing concern about the downstream activities, the authors perform a simple analysis for the men of the reader reference.
1: Overview of Trends and causes of the recent comic
In winter, along with the cold weather, comic will also demand slowed. Higher in commodity prices, pricing policies of Baosteel in January rose upward shock of steel, and more optimistic about market prospects, manufacturers and other factors, the prize is not stripping the weakening in demand as a result of terminal fall, but the trend is up repeatedly. Prices in the beginning of the strip, a number of concerns that prices will continue to rise downstream, so started storing the entire market transactions, a slightly warmer, but also stimulated the strip further price increases. However, welded tubes, cold strip, C, steel and other relatively light strip downstream product market, so prices continue to rise as the strip, downstream attenuation of the procurement initiative, the entire strip a significant reduction in market demand. But the good news of coke, powdered iron prices continue to rise, thus stripping the formation of the stallholders and downstream confrontation, both sides waiting to see their emotions are more intense. And as the largest domestic steel production with a normal, high monthly comic, retail purchases reduced steel making many resources will be distributed to households agreement, eventually leading to a large number of resources on a small amount of a contract in the hands of households, households an agreement inventory pressures increase.
Confrontation between the company and the downstream, the strip prices remained stable. The central bank intends to raise the reserve ratio of the message in the fuse to the impasse. First, steel prices dropped immediately followed by lower spot prices. Strip: the strip if the trend of the benchmark in North China Hebei forward with steel prices on a continuous strip of the pipe, Tangshan, Tianjin, Handan, Wuxi, Shanghai, Guangzhou and other leading position comic strip gradually decreases gradually offering trend has emerged. In the "buy or not buy" mentality of stimulation, there is no warming comic take transaction situation.
2, the current market situation and later strip Forecast
In the pre-strip the high production and lower demand slow, inventories rising domestic steel strip, and many of the resources are concentrated in the hands of a small number of families protocol, resulting in considerable pressure on some great stock. As the Spring Festival approaching, the big cash will Paohuo strong, very negative trend on the strip. Secondly, the strip downstream business downturn is a major inhibiting factor strip prices. By the pre-strip of price and strip the double impact of the business needs of the light, stripping increases the risk of lower production and lower inventories also increased, in such cases, cutting, cut-off phenomenon is gradually increasing. According to market research to understand: At the moment the Tangshan area, pipe cut is very severe, Tianjin Daegu Zhuang region have little control of basic plant shutdown, shutting down more than 50%, and the vast majority did not resume production for the holiday plans. And cold rolled strip, according some manufacturers to disclose: recent cold, with orders being gradually reduced, the current inventory of tropical high in the short term there is no plan to buy tropical. Moreover, the current number of small businesses still believe that the strip strip prices high, despite the intention of purchasing for the holidays, but it can be difficult in the short term goals. Baosteel in February along with the price gap between policy and market expectations, and made the company the confidence of the market outlook for steel is given a heavy blow.
Because of these negative factors, the recent strip prices continue to fall. But powdered iron, coke and other raw material resources remain tight, prices remain company, founded in steel prices some support. The recent strip prices continue to fall, prices are close to the strip line costs. With the recent addition of individual small and medium steel mills pushed maintenance, shutdown and other phenomena, so prices continue to decline in the strip would be more relaxed, not too much harm. Under normal circumstances, the Chinese New Year will largely stagnant market demand, manufacturers have a narrow strip will temporarily pulling up to the post-holiday rally, so at the end of January or early February, strips on the market may gradually return to stability, may even slightly phenomenon. About the Author

I am a professional writer from China Manufacturers, which contains a great deal of information about $keyword_li, welcome to visit!

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