Hits:20432016-05-16 08:54:04
Wary of seamless tube industry overall rebound unsustainable, after rising for months, steel prices have begun a callback. After rising in March 18%, April rose 22%, rise in steel prices is weak in late April and May in a row since falling sharply down from their peak of 15%. Therefore, continuing to capacity is essential and necessary thing to do. "Zhao Xizi said only excess capacity has resolve, vicious competition has curbed, steel industry losses will improve. In this regard, the original Zhao Xizi, Honorary Chairman metallurgical Chamber of Commerce noted that, although the steel industry good economic returns in the first quarter of this year in 2015, four quarters, but far less than year-ago levels, still plenty of short-term fluctuations. According to my seamless network data, key statistics of domestic social stock 26 major cities, April 3 weeks before the rebar size of an average of 300,000 tons of gradually declining, but last week of decline narrowed, rebar from 4.27 million from 4.09 million tons. Including rebar, wire rod, cold-rolled five large kinds of steel stocks also show the same trend (April 1 10.41 million tons, 8th 9.89 million tons, 15th 9.38 million tons, 22nd 8.84 million tons, 29th 8.56 million tons), 3 weeks before the monthly drop in more than 50%, is narrowed to around 28%. With the large-scale production of mills, steel stocks will rise. According to my net-research last year due to collapse in steel prices pressures and the production capacity of about 60 million tons, and now has production capacity of about 80%, which also means that, by mid-May, steel reach social rebound in stocks will drop, seamless steel pipe prices, not rising sharply again. Fitch research report published recently agreed that the rapid rise in domestic steel prices this year are unsustainable. Report noted that the round steel prices mainly comes from infrastructure projects, real estate industry's seasonal rebound and speculation in the futures market. Fitch believes, as steel prices rise to periodic highs, part of the spare production capacity production, total seamless supply will continue to grow, but at the same time maintain strong market demand will not grow. This will enable larger pressure on steel prices in the near future. "Demand for steel is only slightly better, does not rebound. "Said Xu xiangchun, before authorities on macroeconomic has shown that l-type economy, demand for steel has not rebounded, while or repeat the early easing of credit, will also have an adverse impact on steel demand and speculation. Therefore, this year in April this year, steel prices were at the top.
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