In March 2018, the average price of Grade III rebar in the leading market for construction steel fell by 501 yuan/ton, and the traditional “Jinsan” bubbled soup. Has the arrival of April been able to break the curse of the steel market in recent years that is not booming? The “Golden Securities” reporter found that there are obvious differences between the parties in the market.
It is understood that domestic steel prices in March to organize the main delivery situation is not good, and even refresh the lowest level of annual shipments. At the end of the month, after the short-term positives, the parties’ support was less than expected, the market’s high prices fell rapidly, and when the whole month rose, traders’ pessimism continued to increase.
In April, the market seemed to be slightly spring. Yesterday, analyst Xiaowei Xiao disclosed to the “Golden Securities” reporter that recent survey results showed that the social steel stocks are being gradually digested. In some regions, even due to the “dumping of goods” in March, individual resources appeared to lack specifications and steel. Plant inspection and maintenance efforts are also increasing, and market supply pressure will be eased in the short term. From the perspective of demand, at present, although the terminal site in East China is not yet fully started, the operating rate can reach 80%; the operating rate in the Beijing-Tianjin-Tangshan region is also 80%, and the construction sites in the Rugao region will begin to resume production; the construction work in the Central China region will begin. The rate is also above 80%.
In his view, as demand recovers, social stocks will continue to decline, and the market’s supply and demand inconsistencies will ease. If there is no major bad news, the construction steel market in April is expected to continue to rise after this round of minor adjustments.
However, the steel analyst Dai Li believes that the current market cautious, market speculators continue to increase, low buy high sell operations into the mainstream. It is expected that the overall average price of steel in April will still be dominated by broad-based consolidation. If there is positive news from the outside, the price may be higher. In the interview, many people also said that the “trade war” was an important factor affecting the steel market in April.
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Post time: Apr-10-2018