After The Collapse Of The Steel Market Or A Rebound In Demand, But The Pressure Before The Spring Festival Has Not Been Lifted
Domestic steel price shocks weak. The main varieties of rebar, high-wire, hot-rolled coil, cold-rolled coil and plate prices fell across the board, with the plate in the afternoon, a strong pull up the upstream billet prices and narrow strip, profiles market rebound, -40 yuan. However, the days from the mainstream varieties of transactions situation, despite the rebound in the futures, but the overall turnover was not obvious heavy volume, steel enterprises pick up the situation has increased, but the total is still small, indicating that the market is still low market mood. The current steel market from the Spring Festival holiday there are more than 20 days, from the past, the general 10 days before the Spring Festival, the market price or into a relatively flat a depression.
However, from this year's situation, the inventory increase is relatively obvious, as of last Friday, the domestic 29 major cities in the spiral stock reached 4.969 million tons, up 35.3% over the same period last year. Hot-rolled inventory and the plate of the stock chain are incremental, part of the key areas of inventory is also hit a high point in recent years, the stock market has become a high psychological burden,but also the recent drag on the spot market's main factor. In contrast, the pressure on the performance of steel enterprises inventory can still be, China Steel Association released in late December steel stocks 12,307,900 tons of steel stocks, the chain fell 3.31%. However, the majority of steel prices still exist for the Spring Festival, the pressure of single stocking, and in view of this pressure will make the market price as a whole there is a more obvious form of pressure.
In addition, from the recent central bank work meeting of the tone, this year's monetary policy tone from sound to stable neutral, while the financial risk on the front of the financial reform, emphasizing the deleveraging, squeezing the bubble, risk prevention become the main Policy considerations, therefore, in 2017 monetary policy for capital activity or have some inhibition.However, with the rebound in the futures, the spot market continued to fall after a tentative hike operation, but such a hike or limited by the plate pulled up after the emergence of a crash after the fall operation, and can not define For the reverse. Because in the larger market inventory and steel prices are still more obvious orders pressure and some varieties of steel prices there is still a large profit margins in the case, the price of steel is difficult to completely reverse, only a short oversold bounce.