January 6 news: In the stimulus “supply-side reform,” such as multiple positive factors, the steel plate rapidly opened higher today, as of press time, the sector as a whole rose nearly 5 percent, within the sector stocks across the board gains across the board, including Anyang Iron and Steel, the new Steel shares, limit Valin Iron & Steel, Shougang, Wuhan Steel shares, Baosteel shares rose more than 6%. Capital flows standings show that there are more than 2 billion of funds flowing into the sector to become the largest cities to do more kinetic energy.

For steel stocks rose, agencies generally agreed that the recent rise has been emphasizing the “supply-side structural reforms” are inseparable. By the end of 2015, the Central Economic Work Conference re-emphasized the supply-side structural reforms to raise production capacity this year, go inventory, deleveraging, lower costs, make short board five tasks to the steel industry, represented by the excess capacity to become the focus of structural adjustment object. Insiders pointed out that the superposition of these factors to provide a short-term opportunity to rise yesterday.

In addition, demand has also led to the stage to pick up the current round of rising steel prices in the short term. Since mid-December last year, steel spot market has ushered in a wave rally, steel prices generally rose 15-20%. Published in December last year during the New Year’s steel industry PMI index rose to 40.6 percent, 3.6 percentage point rise from the previous month, from the November lows hit in nearly seven years.

But in fact, the real decision steel prices continued to rise downstream demand is still rebound power shortage. As the largest steel consumer market, real estate sales in the fourth quarter, although the color, but is still in the inventory cycle, “Housing sales improved, but sales area continued high sales growth did not transfer to the new construction area.” Qiu Yuecheng said.

National Bureau of Statistics show that last year 1–11 months, real estate development enterprises housing construction area grew by 1.8%, higher than the 1 – down 0.5 percentage points from October.

Looking to the recent trend of steel prices, the market is generally considered to have limited gains. Some organizations pointed out that the steel market to remain under pressure in the off-season demand for macroeconomic and hard up under the influence of still weak, and because steel prices rose too fast, market acceptance will also be affected, in January the steel market trend or will stop rising callback .

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