Steel prices of raw materials vulnerable
At this stage, the entire steel industry is still in the finished steel prices being driven by charging prices vulnerable the market; adjustment in the cost of raw materials on the spot steel market price trends; spot steel prices are completely immersed in the critical period of continued weakness in demand digestion; in the case of steel production capacity gradually reduced, such as iron ore, billet steel charge temporarily do not have the basis of the trend of rebound is reflected in the artificial struggling.
Relevant institutions Statistics show that in June, the Tangshan area, 150 billet market average price of 3590 yuan / ton, the same period last year offer for 4410 yuan / ton, compared with the same period last year sharply reduced by 820 yuan / ton; the nationwide the billet average price over a year compared to the same period fell 890 yuan / ton; June 13, 63.5% of India powder outside the disk offer of $ 137 / ton, compared with last year's $ 180 / ton fell $ 43 / t. At the same time, the spot market steel prices over the same period last year fell from 600 to 800 yuan / ton. Such a point of view, the prices of raw materials at a later stage there is dropping as space on the steel intensity of support is very limited.
In addition, the steel for the procurement of iron ore, billet charging attitude is still relatively cautious, on-demand procurement also contributed to the recent past, prices of raw materials is easy to fall hard up. Steel internal high-priced raw material inventory close to the exhaust, in principle, should appear in the raw materials market, a wave of more concentrated fill inventory procurement market; but because out of the bearish of late Steel City and steel internal finished steel stocks. The high is difficult to digest, making the steel mills had begun to take the initiative to drop production; to some extent, further weakening the momentum of rising raw material prices.
Finished steel prices, driven by continuing weakness in the raw materials market is also weak difficult cases; steel prices - the price of steel - iron ore, billet price transmission mechanism, before the advent of the third quarter, the industry does not have the market of raw materials inversion conditions, is at turns down the stock market; coupled with the global iron ore market is still in excess supply and demand in excess of the continuation of may continue to traction imported iron ore prices to further advance to the $ 100 / t mark, the next period time, the entire steel furnace charge market difficult to return to high.
In this case, coupled with the demand fundamentals of the steel city still have not seen a big bang, and into the summer, the terminal will further weaken demand, steel, or steel trading business, or are shipping in the price cuts, in order to temporarily stable market share against the market trend is unlikely. Demand is difficult to obtain the basic power, the trend of steel prices by the cost of supporting the strength is significantly enhanced. So in the case of raw material prices is difficult to rally, steel is basically the lack of upside momentum. This point of view, the next period of time, the steel price is still maintained within a narrow range of possibility. Plus steel may further maintenance shutdown, the raw materials market weakness is likely to continue.
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