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Investment: QE4 difficult to push up steel prices

Fed launched QE4 and low interest rate policy set specific thresholds: Beijing time on December 13 at 1:30 am, the Federal Reserve under the command of the Federal Open Market Committee (FOMC) announced ,0-low interest rates at 0.25% higher than the 6.5 percent unemployment rate, and that future one or two years within the inflation rate expected not to exceed 2.5% circumstances will remain unchanged, introduced the fourth round of quantitative easing (QE4), monthly procurement $ 45 billion treasury bonds alternative to distort the operation (OT), plus the QE3 the Fed a monthly assets Purchase of $ 85 billion. Fed meeting statement for the first time that as long as the unemployment rate higher than 6.5%, the inflation rate in the next two years than the FOMC's 2% long-term goal up no more than 0.5 percentage points, 0-.25% of ultra-low interest rate policy on will not change, this with many times previously prolong ultra-low interest rates the continuity of policies deadline formed a huge contrast.

Next year look wide financial stability of currency: central economic work conference held soon, next year how macroeconomic policies "set the tone" attracted widespread attention. Analysts said that next year will be a slight rebound in economic growth, prices are expected to remain at manageable. In this context, the next year macroeconomic policy is expected to continue, "while maintaining stability." Fiscal policy is expected to further easing, size of the deficit or expanding, structural tax cuts will have greater space; monetary policy tendency to neutral, will not easily move towards lenient.

Investment: QE4 difficult to push up steel prices

Industry fundamentals:

Domestic steel (3754,72.00,1.96%) Market minor adjustments: construction steel price weakness steady, hot rolled coil prices were mixed, according to Lange Steel network monitoring shows that domestic major cities Ф25mm three average price of rebar 3666 yuan, with the the day before yesterday flat. Beijing three main specifications of 3480 yuan rebar transient stability; Shanghai rebar 3620 yuan market three transient stability. 5.5mm Carbon Hot-Rolled domestic major cities offer for 3884 yuan, the price was basically unchanged from yesterday.

Raw materials market:-chang Li Hongxing common carbon billet sent to the Tangshan quoted price 3.13 thousand yuan, the Tangshan local steel mills factory quoted price 3.11 thousand yuan, than the the day before yesterday rose 20 yuan. North ticket area 65-66% acid powder wet powder does not tax the market price of 650-670 dollars. Jianping region 65-66% acid powder wet powder excluding tax market price in the 680-700 yuan. Major ports in India and powder 63.5% market price of 890-910 yuan; 61.5% Australia powder mainstream in 870-880 dollars. 63.5% Indian pink outer plate quoted 125-126 dollars; 58/57% of the mainstream in the 102-104 U.S. dollars; 61.5% Australia pink outer plate quoted at 122-124 U.S. dollars. Shanxi Province are two metallurgical coke 1330-1400 yuan, quasi a metallurgical coke factory-tax price 1430-1480 yuan.

Technical:

Hot coil around the 5 day moving average and 10 day moving within a narrow range consolidation, MACD bonding display Pupil intertwined, technically still concerned about the previous high 3818 pressure near the previous high point near the narrow range probability. Screw thread West is currently subject to top of the 60 day moving average pressure, last week's shot up after the has continued to decline, below the short-term averages system supports is strong, will remain consolidation trend.

Operation recommendations:

US QE4 was introduced in the medium to long term will continue to make the bulk facing this commodity uplink momentum, but due to the proximity end of the year, funding problems become the majority the merchant's constraints factors that, terminal demand short-time still hard to have obvious growth, market temporarily difficult to have obvious operation may, therefore Expected short-term inner the domestic hot-rolled coil market or the continue to maintain a narrow range consolidation the trend of the, high-parabolic bargain-hunting, a small band operation.

Tags:EN 10155 S 235 JOW,S 235 J2W,ASTM A242 gr1,A 600 A,B,C

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