This week a small decline in market price - 304 stainless steel belt Tianjin stainless steel co. , LTD

304 stainless steel with market prices edged down this week. The main reason for this is that near the holidays market clinch a deal the obvious atrophy. Phase at the same time, steel billet, steel, put pressure on the spot market. And the market price after last week's high and the end user focus on stock before, after rising power weakened sharply, market entry adjustment, next week even appear first a fighting, I'm afraid there will be no too much space. Analysis of this round of the iron ore price rise, as a whole, mainly three factors: first, structural problem is the iron and steel industry in our country long-standing problem, and in the field of iron ore, after long year agreement price into a price index, the market is more flexible and the trade structure has changed, especially small and medium-sized iron and steel enterprises and traders to join the imported ore procurement, this let the market buyer's lack of cohesion, further assignment on the bargaining power to the seller.
at present, the structural changes have taken place in the port iron ore inventories, steel mills from the past and a 60% 40% of the traders inventory structure into a steel mills accounts for 40% of traders accounted for 60%. On the one hand is 304 stainless steel belt affected by the domestic market, stock short-term policies, increase on the domestic spot market temporary purchase; , on the other hand, more involved in the import market, traders in spot iron ore market, traders took advanced mouth again 'pieces of sales strategy. This structural change caused traders to sell over your plate, and the price is at a low price, short cycle inventory strategy and iron and steel enterprises will be more dependent on the spot market temporary purchase, 304 stainless steel prices only rise, not fall. Second, excessive speculation 'urbanization' expectations. As the central economic work conference, clearly put forward the urbanization as one of the future economic, urbanization concept is becoming a hot spot iron ore market speculation. Because of the influence of urbanization is put forward, steel prices rose slightly, the rally is far greater than the price of steel or iron ore.
although demand for steel will promote urbanization, in turn, increase the demand for iron ore, but it is a long process, and may even is the economic engine of the next ten years, increase the market demand is unlikely in the short term. Financing area gradually caused wide markets to increase imports, especially in the international major currencies are executed under the influence of quantitative easing, behind rising prices have money. And in the domestic market, at the end of the financing area to relax, raising the purchasing capacity of iron and steel enterprises and trade enterprises, and finally transformed into real inventory situation.
especially traders in financing area gradually wide case, wu contract-signing process, increasing imports at the same time, this situation lead to 304 stainless steel belt, light trading securities without the city. Even have big traders higher bid directly, not shipment, only bounty.