Steel mills and businesses generally tighter on the financing side, but the price more shipment, but the market atmosphere is relatively bleak, expect under the pessimistic atmosphere, steel prices this week continued to run the overall weakness.
Steel circulation PMI shows that the enterprise sales fell, the downstream orders continue to shrink, enterprises lack confidence about future, purchase intention is weak, the total demand atrophy, stainless steel belt circulation market is relatively weak.
Look from the partial, steel circulation PMI survey of 10 subindex all down.
Among them, the enterprise sales fell, the downstream orders continue to shrink, enterprises lack confidence about future, purchase intention.
Overall assessment on January steel circulation sentiment weak market demand.
from the demand side, with the Spring Festival is approaching, the downstream infrastructure projects, production enterprises, will have a holiday, steel demand will continue to weaken, iron and steel enterprises lack confidence about future, steel trade merchants had winter will generally weakened, purchasing willingness to reduce, stainless steel belt sentiment weak demand.
In terms of cost of support, steel raw materials iron ore and steel billet prices fell sharply in December, the steel price support wanes.
Comprehensive the above situation, in the current demand for steel boom is weaker, steel cost support wanes, steel under the condition of supply pressure increased, considering the demand for steel or will gradually release of overall judgment to the bottom of the steel price in January.
We are still faced with serious challenges: the first is macroeconomic growth momentum has been established, on the basis of economic growth in 2014 continued to slide.
Chongqing h-beam as highly sensitive in macroeconomic fundamental industry, its external environment there will be no fundamental improvement;
Followed by environmental governance appeared in more rigid constraints, a large number of domestic steel mills or suffering environmental penalties, or increasing investment active management;
Again is the contradiction of excess production capacity in May reach the level of more edgy, on the one hand, and some new capacity in production next year, on the other hand backward work difficulties, coupled with the global economy could fall, such as relying on the international market this year a lot of excess capacity will be unsustainable digestion;
The fourth stainless steel industry will impact the existing open pattern, industry huge shock.
