August domestic steel market whether out of the current oscillation pattern? In this regard, a number of steel trading business, think, early in August, this pattern of oscillation may continue to exist, to late August, it is possible to break free oscillation situation, prices picked up again. But some operators feel that August steel prices will continue to oscillate, it is not specific rise in the conditions, only when the lower steel prices fell to the "bottom line" of the cost of production, driven by steel production, to ease the contradiction between supply and demand, the oscillation of the The pattern was expected to change.
That in late August or September the price of domestic steel market is expected out of the oscillation pattern of the operators felt that a fundamental reason is that the market demand for the release of the steel production decreases, the contradiction between supply and demand response, prices gradually rise. In particular, rebar, wire rod and other construction steel market, this kind of out of the oscillation pattern is more likely.
This is because around the protection of housing construction is being stepped up, and into the start of the climax of this year, 10 million units of affordable housing necessary to full capacity in November, nowadays the provinces, autonomous regions and local government is organized and implemented, there are over half protection of housing construction project started, is expected to 10 million units of affordable housing will cost steel 2500-3000 tons, of which the vast majority of construction steel, started construction of pre-twisted steel accounted for steel total cost more than 50%.
August, in the hot season, a number of small and medium-sized steel enterprises will be subject to limited power to cut, cut, the maintenance of the steel market will decrease. In fact, in July, some steel mills have reduced steel production. According to the latest statistics, in early July, crude steel output was 1.955 million tons, reduced by 3.1%. Steel mills reduced production to help alleviate the contradiction between supply and demand, this is also the oscillation pattern of the steel market prices can be improved.
However, there are some operators feel that the continuous qualitative nowadays Steel City facing more complex the situation is relatively good and bad factors are staggered in together, the market outlook remains unclear, it is difficult to hunch. The country such as the second and third tier cities in the largest price gains, the purchase of imminent; demand incompetent, plate ex-factory price, steel prices in August, all fell; the weakness in exports of iron and steel industry, to ease the pressure on tariff adjustments; "money shortage" effect emerges, a group of small and medium-sized production enterprises to survive the crisis, the National Federation of the report praised the current difficulty of small and medium enterprises to survive the ultra-2008 financial crisis period, and some production due to shortage of funds cut, cut-off and significantly reduced demand for steel. Etc., which undoubtedly is a bad after the steel futures materials market.
Many steel trading business on the steel market prices in late August or September to get rid of the "oscillation" pattern seems placed large expectations, also filled with confidence, think "long plate will rise" long shock will, hopefully in the autumn harvest season. The steel trade can achieve a good harvest.
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