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Inventory Restrict the Current Steel Prices to Rise

In the first 4 months of 2017, although infrastructure projects also bring new requirements to ho-ng kong-listed stimulation, make steel prices rose sharply, but steel mills for profits and increase the production of high yield and high inventory, also bring hidden trouble to the spot market, resulting involume and does not match the market demand and supply, the price is generally more than 10% de-cline.

According to agency monitoring, when steel prices rose to a high, 2017, the five major steel inv-entories in 16.546 million tons, rose 37.16% from a year, and now steel price decline, although inven-tories fell 10 weeks to 12.2255 million tons, was up 34.54% year-on-year.

But in the end of April, partial businessman May Day before inventory prices, driven and market steel inventories continue to consume, and part of the mainstream specifications out of stock, steel prices again recover from.Stock market consumption brings better prices gradually;Although the sto-ck fell by less than market expectations, but profits continued and steady demand support is the bigg-est source of confidence in the current market is bullish.

Analysts believe that the backlog of inventory is still is an important factor of restricting the curr-ent steel prices rise.Early may major steel mills again raised ex-factory price levels in 50-150 yuan/t-on, spot trade the market price is to rise, and market clinch a deal the improved markedly and April.S-o the expected steel prices may rise or continue.Money transfer large data terminal, according to d-ata last week, rebar futures prices rose more than 6%.

Agencies understand statistics, however, due to the maintenance situation in north China is mo-re, at the same time have a steel plant shut down due to supply side reform (hebei 72 samples of ste-el capacity utilization at 78.73%, a three-month low), the original part of the small blast furnace dela-yed plans and production at the end of April to early may and production, so the steel production is expected to or has the potential to increase again in May.So, the overall fundamental viewpoint, or m-ay still have a rising power, but gains relative to shrink, and accompanied by periodic callback.

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