The Buildings Site

Chinese construction steel prices rose recently really it?

This week, North District, Beijing, Tianjin's led the big, the price shows "thriving" phenomenon, the magnitude and scope of prices expanding to rise after the transaction or the ideal or average, the market reaction is relatively satisfactory condition, confidence to strengthen. Today's prices continued to rise slightly from the track, Beijing suddenly soaring up and down 100 yuan (High Line High 3280, high thread 3380), closely followed by up to 80-90 per Tianjin, neighboring cities with different ranges up: Tangshan, Shijiazhuang, Langfang, etc. general rise 30-50 per city. Spreading gains, the original firm steady Taiyuan, Baotou is also ready to make big.


East China market, led by Shanghai, Hangzhou, Xian Luo prices continued to push them up; opened early this morning west of the Project Price rose 30 yuan / ton, a steel material trade rose 30 yuan / ton, Wei Liang sales prices 10-20 yuan / ton, Li Ning sales price rose 10 yuan / ton, King sales prices jump 10-20 yuan / ton Other permanent steel, Hua Lei, Kui Shen, Jin Tong, Shun toward selling prices are definitely up there.


A week straight, the major domestic building materials market, prices get, most businesses can not understand, why it would be a continuous rise building material, whether current market situation changed? In my opinion, the recent market prices of the main reasons are as follows:


First, the market price of a continuous low, manufacturers gradually reduced resources, resulting in additional market resources, the gradual reduction in market inventories showed decreasing trend. East side, such as: the North station, dedicated the new ask steel, Haixin, Changzhi, Siping Red-billed plant resources such as access to Shanghai on the decline. Beijing is big stock market basically in the 1.5-2 million tons, significantly reduced the pressure, today only to the steel mills faced difficulties in paragraph customers to play at lower prices, other businesses are obviously cherish goods, said shipping the ideal situation cases, will limit sales.


Second, the existence of the financial crisis, although the terminal was inhibited significantly less than last year relative demand, but this view is still an upward trend. Recently, work in Shanghai, according to the feedback, the recovery of municipal works now only last year Bacheng just about the only real estate-based recovery is only about five percent.


Third, strong steel, helpless mass merchants have to rescue, to recover losses, while the market is now relatively large operation means significant changes have taken place some time ago, in conjunction with each other indirect pull up the price. Closed libraries in some big situations, market confidence has been restored, but many businesses are still hesitant on whether the continuing rise in the price adjustment on a more cautious, only slightly the rise.


Fourth consecutive decline in inventories, the spot market was up today, continuous, and the negotiation of mining agreements, etc. disk drive futures soared yesterday, to a certain extent, enhance the business mentality, but also push the market price up.


Fifth, iron ore negotiations broke up, to a certain extent, enhance the business mentality of the market outlook, coupled with historically low levels now far higher than the market price, business considers the "buy the dips" opportunity has arrived, plus billet prices have recovered to some extent contributed to the rising price.


The sixth, after experiencing a series of "rumors and misconceptions", the news that the management will be Wednesday (15) at a State Council executive meeting to discuss whether the introduction of a new economic stimulus plan, a new round of economic stimulus program will tend to people's livelihood and consumption, medicine, agriculture, new energy, real estate, banking, household appliances, automobiles, textiles, electronics information nine blocks may benefit. Construction steels in the forthcoming by the positive impact of the policy, futures markets fell after a long period of weakness, extreme pushed opened Tuesday, after earlier ascribed to 3600 yuan / ton (Sept. main dish). (April 16, according to news reports the State Department did not release new economic stimulus plan)


The above factors, causing the market price of the continuous rise steel buildings, but I do not think the current market situation has changed, the market has improved, but only stage a rebound, and there are a lot of technical aspects and factors operating means, not really move up the demand for the release of the price.


Must be pointed out that the market at different price levels, bullish and bearish for the so-called sensitivity has a very different message. When prices were high levels, such as 5,6-month period last year, the price level, market conditions are more sensitive to bad news, but on the good news it appears slow; when prices are low levels, the opposite, the market bad news unresponsive, and extremely sensitive to the good news. As the current market price of steel is at a low level, so even if in the future the emergence of new negative factors, such as world auto giants of European production collapse, or even the second round of financial crisis, nor will it have a huge steel prices impact, which limits the space for steel prices fall.


China is a per capita level of resources, especially in countries with low levels of mineral resources. At present, China iron resources (metal ores, scrap metal, finished metal), the import dependence has more than 40% Oil 50% of imports are also a lot of nickel. Expected future import dependence will increase. In this case, if the international market of iron ore, fuel, logistics, strong price run, once again rose sharply, will significantly increase the prices of steel raw materials and steel market conditions variables.

About the Author:
I am an expert from China Crafts Suppliers, usually analyzes all kind of industries situation, such as powered wheel barrow , childrens wheelbarrows.