It has been observed, after steel prices plummeted in July, early August, the market turnover is moving towards cold, tired filling, whether brokers or end users, all waiting to see the market demand in the doldrums. I learned that as of today, the Shanghai steel spot market in August three major varieties of steel, hot rolled coil, cold rolled steel prices continue down the bottom, down 60 yuan / ton, 100 yuan / ton and 80 yuan / ton over the same period of decline from the previous month has been slightly expanded, spread panic in the market mentality, pessimistic atmosphere.
Earlier this month, many steel mills forced to order the organization pressure and continue to sharp decline in steel prices, especially in the East a large steel rebar prices and secondary Budie, resulting in the market traders panic, have sharp sell price cut shipments to seeking cash, resulting in steel prices again further down deep. Businesses to buy up not to buy or purchase psychology, and more makes this extremely lonely market transactions worse.
Now it seems that the macroeconomic environment, capital, demand and other factors determine the recent steel price will further fall, to continue to hit new lows.
On the macroeconomic side, steady growth has been the main principles of government regulation of the economy in the past two months, in view of the deteriorating international economic situation, insufficient domestic demand and economic hard landing pressure increases, this policy largely determines the government late the direction of the series of monetary and fiscal policies. But whether it is down quasi-central bank cut interest rates, or local governments to actively introduce economic stimulus package, are quick to pick up the macroeconomic environment in the short term, it is impossible to make the steel market demand reversal. Implementation of the policy lag, to be market tested.
In terms of capital, it is understood, Shanghai large bankers' acceptances month discount rate August 8 to 4.4 ‰ in the lower level. But in fact, capital flows, the steel industry is increasingly restricted, the steel trade financing costs and financing difficulties are on the rise. Recently appeared on the market on steel trade Paolu missing borrowers, banks focus on the prosecution of the message, Steel City, panic, business mentality is generally unstable.
The terminal needs, macroeconomic, and financial pressures, the dual role of the steel trade has basically been on the demand for change in the short term does not have any hope. The data show that in July, real estate, railway, machinery and other industries in the spin-down steel demand side is very weak, especially real estate, a series of news release that the determination of the government market regulation is still firm, and as the 6th a property market, an inspection team returned to Beijing, the current round of inspection work by the State Council officially ended. Late policy uncertainty still exists, if the New Deal regulation of the property market continue to introduce the real estate industry will continue to be suppressed, and the demand for steel will shrink further. In addition to real estate outside the appliance, automotive and steel industry vulnerable no signs of improvement in end demand is still difficult to release shortly.
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