Steel Marketing Price Increase on May in China

The first week of May, by the impact of commodity futures prices plummeted, the trend has stabilized the domestic steel spot market finished lower to Tangshan billet led the variety of prices fell sharply from about 20 April this start Round the rally results fell 40%, the bubble was squeezed out of most.
The impact of environmental policy and the relatively strong demand driven, before the May Day and 51 during the festival, and even until Wednesday, the domestic steel spot market has been a good trend, the price rebounded significantly, the market turnover is more popular, especially in North China Construction Steel Performance eye-catching. However, the good situation was the rush of commodity futures prices ruthlessly stopped, the steel spot market trend from the rally to decline.
Once the situation is destroyed, steel market is sinking, depressed? Whether the market will appear diving market? Lange Steel Network chief analyst Ma Li said that if it is not commodity futures "demon", the domestic steel market spot market could have run very robust.
First of all, the construction of steel market supply and demand situation is good. From the supply side, the latest data show that from January to March this year, China's steel production was 46.37 million tons, down 3.55%, indicating that the government to clean up the IF furnace, the steel does have a significant impact on the supply of construction steel. From the demand side, the social stock for 10 consecutive weeks of decline, indicating that the recent demand is not bad. Lange steel cloud business platform monitoring data show: As of May 5, the country's 29 major cities steel social stock of 10,348,600 tons, compared with the previous week to reduce 61.83 million tons, down 5.64%, the rate of decline accelerated 1.01 percentage points. From this trend, the late construction steel market trend is stronger than the plate will remain for a long time.
Second, with the national environmental protection situation continues to become more stringent, coupled with high prices from steel prices, resulting in steel mills overhaul situation has increased. As of May 5, Lange steel cloud business platform survey of 100 small and medium-sized iron and steel enterprises operating rate of 87.74%, down 2.4 percentage points.
It is said that after the rapid adjustment of prices, it is likely to usher in some bargain-hunting demand admission, steel spot market prices will stabilize. The next week or so, the overall spot market prices will fluctuate at the current level.