Prediction on the Trend of China Steel Price in September in 2009
Resource from: CISA Likes:2904
Sep 02,2009
The increase of steel price this time started from the middle April, which has been lasting for 17 weeks, almost 4 months until now. The current steel price has come back to the level of August in 2008, which is the highest in the recent 10 months. Because the domestic economic is still in the increasing channel and the output of the downstream industry of the steel industry is still recovering, the real highest point of the price in steel industry has not formed yet. The short-term price call-back can be considered as the release of the risk of continuous price increasing in the early period. As long as the demand is still increasing, the steel price has the drive to increase continuously. Moreover, steel plants’ pursue to the profit will also support the stable increase of steel price.
The analysis on the main factors which will influence the steel price in September:
1. International Market: the statistic data from International Steel Association indicated that in the large background of global economic recovery, the international steel market starts to step into the favorable development period. There are two factors caused the output increasing. One is that there is sufficient practical demand and the orders of the companies are full; the other is that the leading level of the company predicted good future market and prepare goods in advance to meet the increasing requirements.
2. Price of Raw Material: in the last ten days of August, the price of the main upstream raw materials in steel industry has dropped greatly, in which the price of coke has been influenced a little because there is still influence by the benchmark price increasing operated by the Coke Association.
3. Steel Stock: the great drop of the steel price caused the market expectation reversal. Some downstream enterprises of demand start to reduce the orders because they worry about the further drop of the steel price, and they only keep the orders which can meet the minimum production demand., which results in the greatly increase of social stock. The drop of steel price is not because of weak demand, but because the underselling of traders and speculators has caused the decline of market expectation.
Prediction on the trend of domestic steel market in September: the rapid increase of steel plants’ capacity utilization rate and the steel price enabled the steel industry to cast off the loss-making phase of the whole industry. At present, though the situation of export is very severe, as the increase of domestic demand, it bids fair to counteract the negative influence by export decrease. What is worrying is that the current domestic steel has large stock, which reaches the highest historical record; the market price is too high. The steel plants continuously increase the EXW price and the end-users refuse to accept, which cause the steel price inversion. The result is that the users’ purchasing desire is weakened and the market circulation becomes slow. More and more people in the industry think that the market risk is increasing and there is like to be a large scale adjustment in steel market in September. There is also an important index, which is the change of American economic data in the third quarter this year. If American economic index in the third quarter upturns, it will greatly encourage the China economy and even the whole global economy, and the steel demand and steel price will continuously increase; whereas, if the American economic situation is deteriorated, there will be a great drop in steel price.
(CISA)
【CBCC News Statement】
1.The news above mentioned with detailed source are from internet.We are trying our best to assure they are accurate ,timely and safe so as to let bearing users and sellers read more related info.However, it doesn't mean we agree with any point of view referred in above contents and we are not responsible for the authenticity. If you want to publish the news,please note the source and you will be legally responsible for the news published.
2.All news edited and translated by us are specially noted the source"CBCC".
3.For investors,please be cautious for all news.We don't bear any damage brought by late and inaccurate news.
4.If the news we published involves copyright of yours,just let us know.
1.The news above mentioned with detailed source are from internet.We are trying our best to assure they are accurate ,timely and safe so as to let bearing users and sellers read more related info.However, it doesn't mean we agree with any point of view referred in above contents and we are not responsible for the authenticity. If you want to publish the news,please note the source and you will be legally responsible for the news published.
2.All news edited and translated by us are specially noted the source"CBCC".
3.For investors,please be cautious for all news.We don't bear any damage brought by late and inaccurate news.
4.If the news we published involves copyright of yours,just let us know.
Previous CBIA Visited Japanese and Korean Bearing Industry
Next 142 Sets of Counterfeit ZWZ Bearings Seized in Guangxi
Next 142 Sets of Counterfeit ZWZ Bearings Seized in Guangxi
BRIEF INTRODUCTION
Cnbearing is the No.1 bearing inquiry system and information service in China, dedicated to helping all bearing users and sellers throughout the world.
Cnbearing is supported by China National Bearing Industry Association, whose operation online is charged by China Bearing Unisun Tech. Co., Ltd.
China Bearing Unisun Tech. Co., Ltd owns all the rights. Since 2000, over 3,000 companies have been registered and enjoyed the company' s complete skillful service, which ranking many aspects in bearing industry at home and abroad with the most authority practical devices in China.
