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304 stainless steel with a strong profit taking impulse will lead to decline in steel prices again - Tianjin stainless steel co. , LTD
by：Hongmei
2020-09-11
Since early April, 304 stainless steel belt continues to rebound, in a short span of more than half a month time, basic are 10% rebound
Basic proved 15%, steel prices in the short-term bottom, this was partly due to steel prices rebound after nearly two months of accelerated decline, the technical rebound need of steel price itself, on the other hand is due to the recent policy has entered the observation period, intensive measures to reduce the possibility of regulation again and authorities in macro policy focus has obvious from 'restructuring' to 'growth' and 'restructuring' pay equal attention to, in this case, in an inventory, driven by steel prices appear a certain degree of rebound is understandable, but the current steel prices rebound has been in a sensitive point in time, on the one hand, of steel consumption is the traditional peak season in May, the downstream consumption must rise, on the other hand, the rapidly changing international economic situation also adds a lot of variables to steel prices rebound, under such circumstances, how to grasp the situation is critical, galvanized round steel producers may the following information by the author according to the present and do some simple analysis for everyone, for everyone to grasp the steel price trend of may help.
Economic downward pressure is still large, in the field of production, especially to the field of industrial production growth is still not ideal, manufacturing overcapacity is still the main contradiction in the economic development, a few years ago the stimulus form of investment is transformed into productivity, increased overcapacity.
the focus of the analysis through the above two aspects, may have great uncertainty, rising steel prices will emerge in the months before low after high situation, main reasons: 1) Big steel mills to push up steel prices noncommittal, mainly in order to maintain normal production, don't want to booking contract affected by price fluctuations, on the other hand, the recent widespread losses, 304 stainless steel belt industry to enter the market by 'inventory' into the 'capacity' stage, combined with the integration of the beijing-tianjin-hebei region planning be vividly portrayed, hebei face using industrial upgrading backward production capacity, the historic opportunity. 2) By hype without demand prices won't last very long. From the current look, prices rose in the near future is by selling between traders and steel mills continue to rise in price expectations. Once the market prices downward, can't keep up with market demand, the early stage of the profit resources will inevitably choose to take profits, directly on the steel market prices continue to rise. 3) Short-term policy surface the current weak balance, and from the present situation of the domestic economy, inflation and deflation is coexist, 'growth' and 'restructuring' entangled, again once the economy is overheating, powerful regulation will release, policy regulation and control risk always exists, abound. Downstream demand will also be in the down channel, but seasonal demand release is inevitable, so it is difficult to rule out steel prices first rose after the fall of volatile, in the short term, demand release with a technical rebound, combined with the money the moderately loose, and part of scope to rise, but if volume cannot enlarge, can't cooperate with the rising price of steel downstream demand, 304 stainless steel with a strong profit taking impulse will lead to decline in steel prices again.
the focus of the analysis through the above two aspects, may have great uncertainty, rising steel prices will emerge in the months before low after high situation, main reasons: 1) Big steel mills to push up steel prices noncommittal, mainly in order to maintain normal production, don't want to booking contract affected by price fluctuations, on the other hand, the recent widespread losses, 304 stainless steel belt industry to enter the market by 'inventory' into the 'capacity' stage, combined with the integration of the beijing-tianjin-hebei region planning be vividly portrayed, hebei face using industrial upgrading backward production capacity, the historic opportunity. 2) By hype without demand prices won't last very long. From the current look, prices rose in the near future is by selling between traders and steel mills continue to rise in price expectations. Once the market prices downward, can't keep up with market demand, the early stage of the profit resources will inevitably choose to take profits, directly on the steel market prices continue to rise. 3) Short-term policy surface the current weak balance, and from the present situation of the domestic economy, inflation and deflation is coexist, 'growth' and 'restructuring' entangled, again once the economy is overheating, powerful regulation will release, policy regulation and control risk always exists, abound. Downstream demand will also be in the down channel, but seasonal demand release is inevitable, so it is difficult to rule out steel prices first rose after the fall of volatile, in the short term, demand release with a technical rebound, combined with the money the moderately loose, and part of scope to rise, but if volume cannot enlarge, can't cooperate with the rising price of steel downstream demand, 304 stainless steel with a strong profit taking impulse will lead to decline in steel prices again.
