Saturday, September 25, 2010

Steel City rational expectations change gradually



The recent construction steel market is relatively calm, steel mills and dealers began to pay more attention to the rational market changes, changes gradually from stocks, steel price adjustment, market changes and the network around the upper and more ways are to understand the market changes, so the help of various decision-making late changes in the market, from this perspective, changes in steel city of the more rational.

Building with steel and sheet steel varieties such as price changes influenced by changes in demand, its price volatility is also greater. Looking at changes in the steel market in recent years, especially in construction steel and plate, its steel production capacity by the requirements phase of enlargement and the common role of the more prominent periodicity.

Building this year change in terms of steel, Handan Iron & Steel Prices High Line from the June 28 of 3690 yuan (per ton, the same below) down to 3,540 yuan, from July 8 of 3540 yuan to 3310 yuan down, and from July 18 of 3310 yuan to 3230 yuan down, high-wire prices down 20 days to 460 yuan, can be up and down are unstable. In the "gold 9 silver 10" of the season, the steel is almost no change and stability, highlighting the steel mills and distributors experience sharp fluctuations in the strengthening of post-rational consciousness.

After several fluctuations in the price after the steel enterprises should realize the harm capacity expansion, in order to expand their competition will eventually lead to the disorder in the industry, steel prices is to increase the current behavior of the main added value of products rather than increasing production , with minimal manpower and resources to create a huge benefits. Steel mills to market ability is very important, and this demonstrates the importance of market research and forecasting, Tong Guo understanding of needs, develop the production that meets market requirements development policy would be yes is very necessary to the conduct Genbenjueding Suoyigangchang the market trend.

Moreover, the steel should also be reflected in the rational account of the agreement and end the sale of policies. Timely and necessary to improve the sales policies and sales agreements household policy is necessary, the current agreement amount of household energy delivery from the steel mills, steel shipments accounted for 70% of the remaining 30% is steel straight terminals. So the enthusiasm of farmers to improve the agreement to some extent stabilize the market.

From the dealer, the current steel industry, competition is intense, unregulated competition there, like the low-price competition, shoddy and other means to disrupt the normal operation of the market, but also broke the price stable.

In addition, a number of uncontrollable factors also affect the rational development of steel prices, led to changes in the volatile steel prices. Inter-regional price differences as a result of price instability. Mid to late 10, the Beijing market Shougang, Tangshan Steel prices in the production of high line around 3110 yuan, 3070 yuan price of common line, while the market leading brands of Shijiazhuang High-line price of 3250 yuan, general line price of 3200 yuan, Shijiazhuang, Beijing market resources into the market is inevitable, so the recent wire Shijiazhuang market prices could still go either; but the Beijing Shijiazhuang market than the market price of rebar by 70 yuan, so the market Rebar prices in Shijiazhuang Beijing market will not be temporary influence will remain stable in the short period of time.

Throughout October the operation of the market, the overall feeling is rational, steel demand increased slowly in the next performance is not strong, but flat to down, the market leading brands of resources is not great, prices are also relatively strong in considerable narrowing of small-brand market space, to stabilize the market price.

However, the domestic steel market prices far below the stability of the international steel market price stability, the rational development of the domestic steel market should also continue, the steel city to change more in a "more balanced supply and demand," the development trend, so as to raise the overall level of the domestic steel industry, including the level of competition, profitability, sales levels. Therefore, the distribution of steel chain should play out in each and every level of it, looking forward to the domestic steel market go healthier and more robust.







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