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Steel City "boring": weak balance can be maintained long?

Domestic spot steel market available for the recent trend of "boring" should be summarized, to stabilize the long fall did not bring about "momentum" to the market. According to the latest market reports, inventory, demand, output, Steel City, three major factors, can only be maintained at least "weak balance". This state exactly how long the market is still observed.

According to monitoring the recent domestic steel price trend is still weak, relatively speaking, long products slightly stronger, weaker plate. As the turnover in the doldrums, the overall trend of the steel market is very dull, and can only get less stable weak balance between weak demand, high-yield and relatively low inventory. The judgment of the steel market outlook is very cautious, following Baosteel, the leading steel mills in Sha Steel, Wuhan Iron and Steel are also being lowered prices, which makes the mentality of the spot market is more complex.

According to analysis, in the plate market, prices in general to maintain the decline, albeit slightly narrowed. Plate dominant market movements differentiation, the Guangzhou area stabilized stabilized, Shanghai, Beijing, Tianjin market fell slightly. The Shanghai market fell slightly larger subdued turnover, businesses wait and see mood is very strong. Weekend last week, the Shanghai market plate inventory the Masukura phenomena, taking into account the poor shipping and the late arrival of the pressure, the stock is estimated that there will be a slightly Masukura pressure. Overall hot-rolled market is vulnerable, but also showed significant and stable South North pattern, most of the market in the north, northeast region is a weak downstream. Baosteel factory pricing out "or disk, businesses generally expected that other steel mills will follow-up to" the market in a wait-and-see atmosphere more dense.

Construction steel market is down, but the decline is significantly narrowed. Among them, steel composite index rebound. From all over the market conditions were mixed, the market prices in Shanghai, Guangzhou, Beijing is slightly weaker, Tianjin market running smoothly. A brief rally of the Guangzhou market, thanks to the Shaoguan Steel and Guangzhou Iron and Steel, and other leading manufacturers in South China has raised the price. With the slowed market transactions, the local prices once again caught in the consolidation trend.

One analyst said that in the recent "China's steel industry, Credit and Risk Control Forum and the Chinese steel industry and steel market is a fundamental change in the process of domestic steel trade and industry," a comprehensive reshuffle "were inevitable integration and restructuring of the steel trading business behavior will increase, some steel trade enterprise will certainly be "out", because the profit margins of the steel city of the future can not accommodate such a large number of steel trade enterprise.

According to some market participants said, "high yield" of the steel market has ended. Engaged in the steel trade and industry in the future, one can not be greedy, to return to the main business is to develop long-term stable state of mind. The key to the transformation of steel trade and industry, re-engineering to optimize the profit model, to adapt to the low-speed development of long-term trend, mining long-term stability and multi-dimensional space of the profitability of the industry chain, and can no longer rely solely on the past simple "moving bricks and mortar" type who buys cheap selling business model, real value-added services in the upstream and downstream links.

China steel net view: refers to the merchant's words: "weak balance let's be more tangled, not as good as all of a sudden fall through. Maybe a lot of businesses have this feeling, vulnerable balance can not persist, not to change the Steel City, the overall pattern, but upset the market mentality, happy point, we might as well come all of a sudden fell to the bottom, and then have a rebound opportunity.


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