INDUSTRY NEWS
Steel market in the short term to maintain a volatile pattern
According to data, the recent steel market showed a volatile trend, spot prices encountered a rapid surge after the fall, but traders in the hands of less goods, the voice is weak, and steel mills are still strong, there are still a few steel mills up, short-term steel mills are unlikely to reduce prices. On the spot side, because inventory is small, the short-term active deep fall is not very likely. The focus remains on supply-side attitudes and changes in downstream demand.
On the supply side, steel mill output has risen since the price of the crazy rise, but because of the rapid decline in inventory, steel mill output increased but did not cause the supply side collapse phenomenon, so the short-term steel mill attitude is still strong.
Technical aspects of the recent market guidance is also weakening, to the main contract of threaded steel for example, the early price continues to rush high, stimulate spot prices to follow the rise, but then the stage top appears, the price opens down pattern, but the short-term 3600 yuan / ton of the first line has support, so the price of multi-sided volatility trend, short-term long-short need to wait.
Spot, from the recent market situation, many began to appear to decline in prices, more not conducive to the middle traders of the reverse situation, and the terminal will be on-demand procurement in the near future, the overall is not conducive to the price continued to rise. At present, the supply side continued to make profits, the level of profit at 500 yuan / ton, some steel mills higher, the pressure from the supply side will increase significantly later, especially in the fourth quarter demand will gradually weaken, the latter supply and demand contradictionwill will also start to highlight, the end of the winter storage needs to see the situation.
Short-term market experience consolidation, spot prices to open the downward pattern, even if futures have rebounded, is not conducive to the spot price again to stop falling and pull up, the current market price has some room to fall.
Previous Page：Wsa: global crude steel production in October 2019 is 151.5 million tons
Next Page：11 cities in Jiangsu Province to launch yellow warning of heavy pollution weather
