The industry believes that the current steel prices have bottomed out in November began to show signs of stabilization, if the price of steel in December can maintain this status, then this year, steel prices are expected to achieve no loss. If the price of steel remains the same before the Spring Festival next year, then the steel industry is expected to recover and stabilize.
With the average daily crude volume dropping back to 1.9mt in late October, it will continue to maintain this level in early November. If the trend is maintained during the year, the steel industry is expected to turn around.
Wang Xiaoqi, vice president of China Iron and Steel Association (hereinafter referred to as "China Steel Association") said that after the steel price bottomed out in August, it started to stabilize. The most difficult time has passed, the industry began to gradually improve. "Crude steel output of 1.9 million tons and below, the entire industry will not be a loss. As long as the daily output of crude steel a heavy volume, the price of steel down, ore prices rise, steel enterprises benefit will come down." Wang Xiaoqi said.
In this regard, the industry analysts believe that every winter, the north of resources south of this is customary, every year so, "North timber south" will result in the construction of imported steel market price changes have some impact, but not necessarily have a great impact, Because the resources south will not flow beyond the acceptable price of steel mills, but also will not limitlessly in order to run volume and deliberately south. After all, the resources south of the country need to be accepted by the steel traders to make the trip. This has led to the game between steel traders and steel mills on the price and the flow rate. The result is disorderly and orderly. If this happens, it is also unfavorable to the steel mills, which will prompt the steel mills to control the release of production capacity and take the initiative to reduce production and limit production. Therefore, the extraordinary scale of "northbound timber" phenomenon does not seem to appear, the late steel prices will not have much impact.
According to some steel traders to get information from steel mills, steel mills are still ordering goods well recently, with little pressure on production and have some support for market prices. In November, the "18th National Congress of the Communist Party of China" was held. The political and economic situation in the country was mainly stabilized. In the late period, infrastructure investment projects in various places started to work one after another, and the boom in manufacturing industry picked up a certain stimulus to demand. Continue to be stable, will not appear too much volatility.
From all indications, this year's winter, the domestic construction steel market will not be cold, steady may be the main tone. (International Business Daily)