After June’s “storm washing”, the domestic steel prices into July, there have been a wave of sustained rebound, especially in the performance of steel materials represented the most “eye-catching.”
In addition to rising steel prices into July, the domestic steel city “to the inventory,” the performance is relatively strong.Inventory data shows that in the July 1 to 16 weeks time, the major cities ERW Steel pipe, Tinplate, Steel Bars, Steel Channel Angles, H BEAM IPEAA five varieties to reduce the total inventory of 443,000 tons of society, of which threadsteel, wire stock is straight down 264,000 tons.
Accordingly, insiders predict that ex-factory price of the maintenance of stability and the building materials increase, will push up the prices have a further role, since it rose in July to enter the trend will continue at a later stage.
The industry believes that the steel city through June, the “bottoms adjustment”, the current upstream channel has been established, the “gold 9 silver ten” before the advent of steel will continue to rise.”Protection of housing and water conservancy construction, eliminate backward production capacity of work in progress, and strong fixed asset investment in cities around the needs of the construction, steel city will post a huge positive effect, affected, will be led by the late varieties of steel building materials market.”
The industry also said that China’s economic growth is still mainly driven by investment, there can not be immediately changed, and the current investment remains strong, and throughout the process of urbanization has not slowed down in the strong market demand for steel, the price trend is still to emerge.
However, in July of this wave rally in the market mentality common to see empty context, “upstream channel steel has been determined,” this view has not been the industry consensus, a majority of steel trading business of this wave of rebounddoubts about sustainability.There are steel trading business says that in the previous six months, steel prices did not fall through, the price does not reinforce the bottom, so this wave of rising prices may not last.