Steel prices will create new highs?
This week the whole market condition is turmoil with a range of 4200-4270.Will it continue rise in next week? Let’s read today’s market analysis.
Futures market analysis
Steel prices
Now it’s such condition,we’d better not guess the direction,waiting and seeing is a not bad choice.
Spot quote
On August 10,Tangshan square steel billet rose to ERW including tax 3910RMB/TON.
There are 24 main market re bars,the average price of 20mm HRB400E is 4376RMB/TON, 2RMB/TON declined comparing with last trading day.
Totally 24 main markets, the average price of 4.75mm hot rolling coils is 4312RMB/TON, 1RMB/TON rose comparing with last trading days.
Totally 23 main markets, the average price of 14-20mm medium plate is 4431RMB/TON, 3RMB/TON declined comparing with last trading days.
According to the statistics,nationwide steel price sometimes rises,sometimes declines,but overall range of floating is small,the average is within 5RMB/TON.
Ten billions funds boost steel market
For black commodity,supply and demand status and expected change,directly push building material thread re bar to the level of the beginning of 2013.
From mid-July,Tangshan,known as “world steel mill”, is in production limited status to protect environmental. Supply side continue to compress,while demand side of capital construction may increase in the second half of the year,furthermore drive the expectation of building material demands.Two points stimulate the rise in steel prices.
Although from technical side,the trend of steel price rising doesn’t change,we had better not accumulate lot of inventory.
