In spring, the iron and steel market suffered a cold spell. The one-sided dive began in March and lasted until the first half of April. Under the impact of the Sino US trade frictions, the price of the market, which was initially caused by the imbalance of market supply and demand, was accelerated down and the market analysis agency downgraded the steel market all year round.
By March 30th, the Lange Iron and steel national composite price index was 149.7, down 7.6% from the end of last month. This trend is still continuing in early April, although it has risen slightly, and failed to restore the overall decline, significantly reducing the profit margins of iron and steel enterprises. The head of an iron and steel company based in Shandong told the China economic times that the price of steel has fallen sharply since the beginning of March and has reduced the profits of some steel companies to around five hundred yuan per ton from about a ton. At the end of March, some iron and steel trade businesses have come to make winter storage pallet funds to reach the repayment period, and have to sell the hoarded steel at a low price, and the loss becomes the transcript of most traders in March.
The contradiction between supply and demand in the steel market is an important factor in the continuous decline of steel prices since March. In an interview, the China economic times found that because of the late Spring Festival this year, the downstream infrastructure market did not resume production in time in March, and the downstream demand had not been released late, which led to the failure to start the spring Market in the steel market. The traders facing capital pressure became the loss parties in the whole link, especially some by hoarding. Traders. Since March, due to the start of demand, supply release exceeded expectations, steel social inventory pressure highlighted, overlay a series of trade frictions between China and the United States, such as a series of empty factors, the domestic steel market showed a downward trend.
In April, steel prices fluctuated slightly upward, but immediately turned downward and did not change the trend of decline. Iron and steel enterprises, traders and analysts all believe that the downward trend of steel prices is mainly influenced by mentality.
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Post time: Jun-21-2018