Stainless Steel----Six factors that cause sluggish steel price and market
Steel market into January 's obviously bearish fundamentals , but from the current performance, fell steel prices have yet to stop signs , adjust the first-tier cities will continue, Budie second and third tier cities will also be in the ensuing . Insufficient market demand for the future care and traders expected the intensity of negative factors Dongchu initiative , the Steel market before the Spring Festival difficult now signs of improvement . " Gold , March and silver April" still may exciting this year .
First factor : a substantial adjustment of capital markets, depressed steel market sentiment
Commodity movements in the external adverse circumstances , the domestic capital market is also not fully exhausted , copper , plastic , steel, etc. have come down , which put a lot of rebar contract closed out the 1405 Long Yin , market momentum significantly short side , short-term downside pattern does not change substantial adjustments to the capital markets to a greater extent on the steel market continued to depress sentiment , but also makes efforts to adjust steel prices fell again to enlarge.
Factors II: Under the background of weakening demand , steel prices increased bargaining space
Earlier data showed overall PMI index down, the reaction from China's economic growth began to decline again in December last year , the traditional Chinese Lunar New Year fell , including manufacturing , including industrial, construction and other industries will further slow down the progress , most industries will enter phased " work off " period , and the other near the Spring Festival , the downstream market are also expected to shut down. It is understood that some traders is the main task of the back section , going back to their money on the home for the holiday , so the latter part of the market situation is much worse start , the Steel market will gradually enter the " work off " period . Gradually weakened demand, making it difficult to see the rise of short-term domestic steel chance , steel trading business who is actively bargaining space ship also has increased.
Third factors : steel mills are not optimistic about the market outlook , the following multi- tone-based
The current situation is not good tissue mill orders , most mills continue to take down ex-factory price , and give more preferential policies to attract the market , it is understood , January 1, 2014 , introduction of sand steel building materials prices in early January policy threads steel prices down 130 yuan / ton , down 120 yuan high line price / ton, sparked Zhongtian Iron , steel and some other neighboring mills Wing suit price. Ex-factory price increase in steel mills cut down trend .
The Forth factors : reduced support costs , hard steel firm
Near the end , the downstream demand incompetent, steel prices funds extremely nervous , and environmental rectify acts of domestic limited production , limited electricity and occur frequently, leading to a significant decline in demand for iron ore . At the same time , the market is gradually rising bearish sentiment is expected to short-term downside risks still ore prices , continuing weakness is the main tone . Raw trend is not optimistic , the latter may still continue downward .
The Fifth factors : money is tight , difficult years the phenomenon of large-scale stocking
The winter season is a reserve , these two years Dongchu traders have lost market generally afraid optimistic replenishment demand is not obvious. Price occupancy expense and cost of capital and labor and other costs of storage space in the latter part of the changes it is difficult to form a more obvious difference , which also led to fewer and fewer market Dongchu operation , the current profit per ton fell to historic lows let the whole industry into large profits thin -risk situations , steel trading business will purchase dropped to freezing point , and the other end of the loan 's maturity makes a lot of focus on steel trade tensions have worsened funds generally take a "low inventory" strategy to reduce the share capital pressure.
The Sixth factors : the market is expected to fall , weak steel prices mainstream
With the continuing decline of snail movements in recent days , especially in the 7th to close at 3,465 yuan / ton, compared with the previous day's settlement price fell 61 yuan / ton , more sharply , making the market business-to late reproduction disappointed market expectations . Coupled with the recent market demand is relatively light, some businesses basically no ship, and in view of the high cost of capital and the market outlook is very uncertain , unwilling market purchases , Overall mainstream market will continue weak market continues to slump down run .
For the Steel market , 2013 is undoubtedly the ill-fated year. In this myth has repeatedly industry to create wealth in the past year more and staged a parting stick tangled , and the story behind them , like Facebook drama on the stage , as the current interpretation of the steel industry ups and downs . 2013 has turned articles, 2014 head-on , although at this stage is not to force the steel market , but in terms of our firm, the business expectations, the country 's policy of raw materials , etc. can be seen vulnerable situation will not last long , hoping Steel market able to usher in the dawn .
Key Words: Stainless Steel, acero inoxidable