It is predicted that the market is likely to start from the second half of this year there is a turning point, but not immediately a fundamental change, but there will be a long period of a buffer period.
However, the supply side of the reform has come to an end, the future market structure, will be mainly affected by the market fundamentals supply and demand. Therefore, the future market will focus on the iron and steel industry to develop a reasonable profit, the price will fluctuate around the cost.
Although the current steel industry to the production capacity has achieved great success, it is noteworthy that the production capacity to achieve the improvement of business efficiency, but to the production capacity, the iron and steel enterprises in the ton of steel profits hit a new high, in profit stimulation, some production capacity Resurgence, so to produce stainless steel tube has real significance.
Although the first half of the steel prices data is not released, but according to January to May data show that China’s crude steel consumption of about 339 million tons, an increase of 8.8%, which in April and May consumption year on year growth were To 13.6% and 22.0%.
the two months of single-month crude steel consumption growth much higher than expected, but also boost the profits of steel companies to further increase. However, it is worth noting that the profitability of steel prices, the future trend of the steel market is more pessimistic.
From the forecast of the first half of the net profit data, into the April 2017, in the high profit stimulation under the high release of steel production, social stock prices continue to slow down, coupled with tight monetary policy, real estate purchase measures to upgrade the confidence of the market rebound Resulting in inhibition, the steel market will show a weak trend of shock.
In this regard, some analysts said, on the one hand from the cost point of view, the price of iron ore is declining, the market for the late trend of iron ore prices, but also to bearish, so the cost of late steel will remain in a Down the channel; the other is the downstream demand, the decline in social inventory, in the early or very fast. Although the decline in the late slowed down, but the rate of decline is still a certain rate.