Sadly announced at the China Steel Association on Tuesday, the last of the rebar futures contract bottoming trend came to a screeching halt after the loss of the steel enterprises in industry, and touch on the contract's highest volume in the second day, showing both long and short game upgrade: pick-up in high-cost support under the bottom, or under the pressures of the long winter?
 
Steel prices what is on or, it may be related to the degree of economic rebound, but the long term, but also depends on a "huge body" China's steel industry can achieve a gorgeous thin because of the low-profit or loss over the years to always be hanging in the top of the Damocles sword is slowly falling. This is not a temporary phenomenon "turns warm again," steel prices may also be wide at the bottom of the "pan" wandering a long time.
 
In large and medium-sized iron and steel industry began in May 2009 to get rid of the profits of negative 32 months after the Chinese steel enterprises profit transcripts reproduce the negative in January this year, and the main business profit in the first half of this year, also end up losing money, the profit margin of only 0.13 % in all industries at the bottom.
 
In fact, this is the total global production capacity of the "fat" after-effects of half of the giant Chinese steel industry, the global economic downturn and domestic economic slowdown is a catalyst of the above symptoms appear. After the huge excess capacity China's steel industry, saddled with the multiple pressures of the high-cost, resources and environment already walking wander.
 
Iron and steel industry are low, although higher than the 2008 point, but the follow-up rebound and 2008 V-shaped, U-shaped rebound, and we are difficult to predict the U-shaped bottom will last long. "Analysis division, said.
 
In the steady rise of the Chinese economy, China Steel Association, vice president Zhang Changfu stressed that "China's steel industry to do ready to face the difficult and long-term 'winter'."
 
Pessimistic investors insisted that the raw material and fuel continued to fall and also to allow greater space for steel prices, weak demand and huge wealthy capacity comes on stream impulse to make steel prices is hard to hit the bottom. However, there are also optimist eager.
 
"Now the price a distance of only a few dozen points at the bottom of next week to touch the bottom of the second, I think that approach is a buy signal," the one, of course, those who worked in the futures market institutional investors select a small single first, but at least the downward risk is very small.



Other News:
Who swallowed the profits of the Chinese steel industry?
Steel prices two restricted short-term continues to plumb the road
Northern steel trade foot ＂Industrial＂ winter is very calm
Steel prices two restricted short-term continues to plumb the road
The imbalance between supply and demand downward price fluctuation adjustment of
China Bicycle complaint is not Fanzao fine UCI: do not accept the complaint
Iron ore prices could fall further
Exposed British Cycling men's team suspected of ＂diving＂