From the current perspective, short-term steel market is rising or without power, down-free atmosphere of the cycle, the overall market or adjust the main shock, the range of USD 6-12 / ton. Analysis, on the one hand very price will feed manufacturers strong at weaker steel market two days before the premise, manufacturers and steel billet manufacturers almost did not fall, manufacturers very price will demonstrate, the cost of supporting the market. On the other hand the terminal needs follow-up is limited, some businesses believe that the current price is a little high, there are some short-term market correction is expected, so for more than the current market mostly watching, getting goods enthusiasm is not strong, steel prices suppressed. Also nearby futures market has entered an adjustment phase, fall and rise are looking for direction. Thus, short-term market or in long and short game, finishing a narrow range market based. As finishing time, under the premise of no major adjustments futures, temporarily to see a week or so.
For long-term market, still pull up trend. First, the ongoing environmental audits, according to market sources present, Jiangsu, Henan, basic quick review has been completed, there is a trend towards the transfer of Shandong. The second half of the face 70% of the elimination of backward production capacity mission, the larger market pressures, is expected to post non-compliance so that enterprises have ceased production, limited production, such as multiple means to union, is expected to reduce the supply of market speculation factors, the market form a good support. Second, after the experience of the pre-flood, post-disaster reconstruction will be launched, will be ordered driving steel demand, steel prices boost. Third, gold, nine silver and ten positive expectations, is expected to begin in late August will advance intermediate traders replenishment operation will also promote steel. Finally is the futures market, the futures trend, continue to pull up the possibility of late remains high, support the spot market. On the whole, the late positive factors remain strong side, steel prices have upside.
Taken together, the factors that pull up Xuanrao August steel market is not good drop, short-term market within a narrow range, with firmer and long-term oriented, we recommend a good grasp of the business market, pay close attention to the trend of futures and raw materials. (China’s steel prices)