Analysis Of The Steel Market

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This week all varieties of steel products dropped for the second consecutive week, including a greater decline of steel and iron ore. It is in line with our expectations of last week. The steel industry, due to the impact of the downstream demand, has driven down the price of iron ore. At the same time, the national inventory of steel has been through resistance. It is expected that in the short-term, iron ore, iron and steel industry will continue to adjust. The steel profits will reduce slightly.

Baosteel reduced steel prices for the first time in the nine months and the other steel mills immediately followed up.On April 15, Angang steel announced an overall decrease of prices in May. The large reduction margin of cold-rolled, galvanized, color coated sheet products made the market "bug-eyed". The ex-factory price of cold-rolled products decreased 480 yuan per ton, galvanized products decreased 350 yuan per ton, color coated products decreased 300 yuan per ton.

From the point of view of order, the general order of steel in April is good, but orders of some manufacturers have started to decline. According to publicly reported information, the orders of Baotou Steel in April fell to 90% of, and the order has n reached 100% for the first 3 months of this year. Steel stocks on the market now are roughly 10% higher than the same period of last year, which will bring good news to offset the price of steel.

Experts of the industry analyzes that the reason why the steel factory producing of steel sheet cut price is mainly due to orders for traders and downstream industry have shrunk dramatically. The pressure of steel inventories is much higher than the same period of last year. Therefore, "This time a substantial decline in value of steel is to lower the "upside down"level, stimulate the enthusiasm of traders to ensure the order quantity.

However, from the long-term perspective, in the next two years after the further improvement of the supply and demand of the industry, the iron ore industry will also supply the heavy volume of raw materials to relief the bottleneck constraints. The industry profits are expected to appear continuous and substantially improvement. Steel stocks on the market now are roughly 10% higher than the same period of last year, which will bring good news to offset the price of steel. We believe that the market share of the steel curtain has just opened. In the next 1 to 2 years will usher in a strong recovery of steel.


About the Author:
I am Amanda Xia from chinametalsnet.com, and my work is to promote a free online trade platform. http://www.chinametalsnet.com/ contain a great deal of information about oliver steel plate,stainless steel jug,history channel steel,and more.



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