The recent 304 stainless steel production overhaul phenomenon began to rise - with aspects Tianjin stainless steel co. , LTD

Agencies analysts believe that despite cuts in the recent 304 stainless steel belt repair phenomenon began to increase, but the year-end financial strain, and atrophy of the order, under the situation of steel prices remain competitive. In addition, the direction of the steel plant resources of low price on the market of south north also can form a direct hit, steel prices in the short term has still difficult. For the markets of observation, next only to wait until after the lunar New Year holiday. In previous years, due to seasonal factors, steel trade, often by the end of the hoarding a batch of steel, after waiting for next year's spring construction steel demand is unleashed can sell. But since 2011, the industry is in a state of low profit or even loss, most of steel trade, agent has experienced the dilemma of 'stock up as losses', the traditional industry had winter market will fade away, 'at the current lower steel inventories, had winter is expected this year has been largely failed'. 'Financing area under the condition of relatively nervous at the end of the year, traders are hoarding will generally lower goods, more likely to rise in steel mills finished goods inventory, inventory and steel society will continue to drop. Guo-qing wang said, 'but, considering the agreement with steel mills agent cargo arrive by the end of the steel trade miner, steel social inventory or passive recovery in the wake of a bottoming out of the situation.
in iron ore prices this year crazy fall is rooted in the mine, supply exceeds demand, domestic originated from the same port stocks were up to high. At present, the port inventories are still high, which indicates that structure of supply and demand does not improve, the market bearish sentiment is aggravating, which in turn down ore price. In addition, the previous high in 304 stainless steel belt inventory mine ( Zombies mine) May be there are selling can be sold and turned into money. Domestic port stocks during the period of rapid increase, the international ore price is still relatively high, but also shows a tendency to increase trade accounts for the ore ratio, verifies push port stocks are traders, do not rule out they were suspected of stock up to stay up. Considering the end of the money is tight, traders will throw cash. The ore price will also be confined downward. Ore price has fallen below the cost of domestic mining line, but this is not as expected downturn in production, investigate its reason basically has the following several aspects: first, large-scale mining as the main source of local finance, the sideline is profitable, and under the background of strong local support, difficult to appear production; Second, investment has gradually transformed into productivity, which in turn brings the increase of production; Third, the scale is beneficial to reduce the cost, even if the ore price downward, mine is still as planned investment; Fourth, the current steel charging structure determines the domestic ore demand space. China's steel demand gradually into the plateau, the domestic crude steel production growth is slowing. Global iron production growth, increase in demand, however, compared with the supply side, demand side growth obviously do not match. In the first three quarters of this year, the big four mining iron ore production year-on-year growth up to 13. 68%, larger than global pig iron production growth, more than 304 stainless steel belt production growth in China.