The price of steel ushers in a wave of rebound in September finally after 5 months continuous decline in the domestic and foreign policies and seasonal factors. By October 19th, the domestic steel price roses by 300 yuan per ton. Also, steel profit level rises and profit enterprises expand to nearly 90%.
According to the steel index display, by October 22nd, it shows136.1 point. It picks up 9.49% compared with the year low of 124.3 point. Relevant data shows that October 22nd the average price of 20mm three screw steel is 3958 yuan per ton, rising 349 yuan per ton to the year low. The average price of 6.5mm high line rises from 3532 to 3837 yuan per ton, too.
After retaliatory rebound of September, a lot of domestic steel productions have a certain profit space. According to the survey, the loss has reduced to 10.49% and nearly 90% steel enterprises reap profit.
The picking up of steel profit level directly stimulates some steel enterprises product again and production rebounds. That will aggravate the contradiction of supply and demand of market.
Analysts point out the downstream demand still does not show substantial improvement. Downstream household appliances industry and automobile industry are still in the doldrum. So, for the latter steel price, analysts say, serious overcapacity of steel will suppress the future price of steel and the future we should focus on is the production change of crude steel.
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