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Market good digestion and the late steel prices continue to hit new lows vulnera

Ushered in a wave of good steel production market in the end of July, the domestic steel market, architectural steel prices of steel, driven by slightly higher in early August due to difficult to keep up with demand, and businesses once again into space up weak prices energy to the embarrassment of some bargain-hunting steel trading business, facing the risk of loss increase in the space up; sheet continuation of warm boiled frog "like the stock market is still weak demand constraints and gradually reduce the favorable factors of the current market, I believe that the late steel prices or re-enter the vulnerable Xundi process.
 
Market monitoring shows that, as of August 2, closing, 6.5mm high line the average price of 3715 yuan, up 9 yuan; 25mm three steel price 3796 yuan, up 23 yuan; 5.5mm hot-rolled Carbon quote 3695 yuan, down 7 yuan; 1.0mm cold plate the average price of 4658 yuan, down 10 yuan; 20mm in the board the average price of 3673 yuan or 11 yuan; 1.0mm galvanized average price of 4931 yuan, up 5 yuan; a 0.47mm Caitu average price of 5779 yuan or 5 yuan; narrow specification of 2.5 * strip price for the 3480 ~ 3540 yuan, down 25 yuan; 4-inch pipe the average price of 3958 yuan, down 20 yuan; 108 * 4.5mm seamless pipe average price of 4751 yuan or 15 yuan; 200 * 200H steel average price of 3717 yuan or 16 yuan.
Kinetic energy less than the steel production efforts is limited
From China's national conditions, in order to steel large-scale production, unless they lose they can not do anything, but this is almost but not too practical; China's steel industry, mainly the right to speak or the hands of state-owned steel enterprises in the hands; backed by all levels of The production plan of the government, the state-owned steel mills are often subject to intervention from the executive power at all levels; currently approaching 18 Congress governments at all levels need to keep the data "good looks" will never allow the local steel production.
 
In addition, steel production is a behavior may not, in the current circumstances, China's steel prices have experienced long-term decline, the price level hit a two-year low of well prepared, but due to the market caused by the sensational effect steel in high yield and low sales at the same time, so although uncomfortable, but not so strong; plus the restart in the blast furnace was halted for a long time need to be considered Once the large-scale production after direct supply placement, reduce the tax may lead to the resentment of local government, the combined effect of the higher cost factors; large and medium-sized state-owned steel mills would never want to easily scale stopped blast furnace production cuts. A lot of underpowered post-steel production efforts will be significantly limited, hope that the initiative through the steel mills cut production to drive steel prices rebound is expected to be a vain hope to enhance the business as soon as possible after the rapid stage of this round of short-term market return to a rational working face, in order to avoid risks.



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