Short - term steel prices or will be weak down

    At present, with the enhancement of cross-regional liquidity of resources, the shortage of resources can be supplemented, but the demand is seasonally weak, and the spot market enters the stage of shock callback. "At present, the steel market fundamentals turn weak, the contradiction between supply and demand gradually highlighted in the later period, the steel price bottom lack of support, is expected to be weak in the short term or fall, the range of 50-80 yuan/ton. On Nov. 30, analysts said.

   Recently, China's imported iron ore market has been adjusted in a stable way, with the import ore index approaching a high of $130. Miners are eager to rise, and the purchase price of steel mills in most regions has been raised. However, with the cold weather, steel demand may weaken, spot resources offer shock, iron ore prices significantly up or limited, is expected to be short-term or stable in the shock operation. "Recently, the price of steel billet in Tangshan fell down a little. After breaking through to the year's high of 3650 yuan/ton, the price of steel billet entered a fast downward channel with the pressure of weakening demand and the period screw diving, falling to 3570 yuan/ton. With the market just need to be some volume, but the direct shipping resources still show general, billet market into shock finishing period. Analysts said.

blob.png    In fact, into late November, by seasonal demand to weaken the impact of steel market prices fell high, the overall trend of surging back. But in the early stage of steel prices rose significantly, the enthusiasm of the steel mill production, some new capacity has been released, to make up for the early supply end gap. However, winter environmental restrictions tend to frequent, annual maintenance of steel mills increase, regional supply will decline, steel mills will continue to price. At present, the east China market line screw price fluctuation fell, compared to the early decline of 80-120 yuan/ton, disk screw decline is more obvious.

    As the futures spiral downward amplification, the supporting role of raw materials weakened, the market negative sentiment aggravation, spot price chaos down. Especially with the temperature drop and the influence of rainy weather, terminal procurement enthusiasm is low, the overall low level of delivery hovering. In addition, the pace of "north timber southbound" is accelerating, resources have been arriving in recent years, and the prices of some specification products have returned to a reasonable level, among which the price difference of disc screw resources is especially obvious, gradually narrowing. "However, in early December, the pressure of capital and sales slowed down, and the steel mill may continue to maintain the price support policy. It is expected that the steel price in early December may be stable, with a gap of 50-80 yuan/ton on the previous period." Analysts said.

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