Stainless steel belt has below marginal cost to a certain extent Tianjin stainless steel co. , LTD

Today's domestic steel prices still continued downturn, but from the point of decline has slowed. Including construction steel prices saw rose, Beijing, xi 'an hebei iron and steel price notice how much to market some life, at the same time, the capital market and hot rolling rebar futures futures also present in early wave red, stainless steel belt upstream prices after a continuous decline in today for the first time service, clinch a deal, the will of the first-tier cities some sensitive varieties has seen more clearly. But the downturn is still macro data as the present market pressure factors, the largest sheet as an indicator of corporate, baosteel price or late will trigger copycat reduction tide, and the overall low finished product material cost price, and even steel mills ex-factory price lower range is not big, but by the market downturn, steel mills to maintain the middle link stability agent etc will give corresponding subsidy according to the market, thus poses challenges to the profitability of steel companies, so we may take measures in production, maintenance or control capacity release and so on, so, it is fundamentally reduce the supply of the market, steel prices play a positive role in support to the whole. For market in the late September, therefore, the trading cycle itself is shorter, the market appears even gained strong trend, the space is not too big, on the contrary, the market of chasing down is not the end of the market, combined with the macro negative pressing, stainless steel with a lower trend will continue, is the heaviest steel mills reduction tide strikes on psychological suppress the formation of the market will be, we are going to face a new test. But the author also mentioned in the article yesterday, the market is already feeling the pain, therefore, the space of the downward price, adjusted for release the bad, will not be the market further longitudinal repression.
at present, the contradiction between supply and demand of steel is still more prominent, there is downward pressure on national economy, the demand growth is slow, a little profit of enterprise still full power production, and terminal consumption and middlemen receiving ability is insufficient, steel mills internal steel inventories are increased. Downturn in the market opening is not the end of the market downturn situation, prices falling, and the decline continues to increase, the downstream users purchasing is not active, the market clinch a deal. In the fundamental lack of positive support, domestic plate continued under environment, market fears hotting up. At present, a lot of businesses choose straight hair or to fast into the fast pin operating from steel plant is given priority to, reduce inventory or zero inventory, to avoid risk. Among traders as steel mills 'enormous reservoir' role is waning, only the steel internal inventory passive increase to a certain extent, and stainless steel belt has been below the marginal cost to a certain extent, two kinds of conditions at the same time intertwined, steel mills will choose to turn off part of the production line.