U.S. debt crisis spread to the domestic steel: steel is

       According to the Xinhua News Agency, Shanghai, August 13 – U.S. sovereign rating downgrade has triggered a global market, “bad”, but also spread to the domestic spot steel market.
       According to the latest market reports, stock and commodity markets such as steel futures prices fell sharply, once the confidence on the spot steel market has “hit”, steel prices a “panic” callback.However, the “spread of the market”  is hard to change the operation of the rhythm inherent in the steel city, the domestic steel prices to gradually stabilize.
       According to the analysis in the international financial market turbulence under the influence of domestic construction steel series prices are generally a correction, volume was down.In the market are reflected in the short-term “panic” after the performance was still a little more obvious: the current steel market is relatively low inventory levels and high cost of support, the low-cost resources “fast convergence”, the overallprice rebounded.Manufacturers of construction steel price changes is also of concern, the latest ex-factory price per ton of steel bars in general by 50 yuan, and per ton of the contract in early August to make up 50-80 yuan, while the wire of the latest pricing were mixed.In steel futures, rebar fluctuated after the main contract plummeted.
        Cold-rolled prices firm, low-cost resources and smooth transactions, businesses more cautious attitude.In the market say in the futures, the sharp decline in electronic trading in the case, as opposed to the construction of steel and hot rolled stock fell sharply with the domestic cold-rolled products of “defensive” strong.The reason is:
On the one hand, the recent market-leading resource of cold-rolled slowly up inventory, individual specifications are more tight, the Shanghai market, for example, some manufacturers of resource supply is relatively small, some specifications of the supply is tight, businesses will lower prices is not strong;
        On the other hand, although the data show that domestic economic growth has declined, but the overall point of view, China’s economy is still running in the range of stable and rapid growth, endogenous economic power is still relatively strong.In addition, Baosteel’s board in September, a slight increase in ex-factory price, to some extent gathered sentiment.
        According to the analyst, said the short-term market “panic” fluctuations, and will not completely change the Steel City’s own operating rules.With the “emergency” negative factor was the gradual “absorption”, the Steel City, “how to how to go will go.”More concerned about the current market is that domestic inflationary pressure has not been eliminated, the central bank to raise interest rates again or strong, if the chain has been tightened further increase pressure on the funds, you need to run the city of steel “re-observation.”However, the Steel City, the traditional “Golden September and Silver October,” the consumer the upcoming season, if the demand for the release schedule, steel prices still expected to resume its rally.

Share with

Leave a Reply