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The Forecast For Chinese Steel Market In May

May 05, 2017

    So far from April,the price of bolt and billet keep going down,which is totally unexpected for buyers.The finished steel products also fell into market downturn.Especially,accompanying with the repeatedly refreshed low price record of the bolt and billet,the price of finished steel products is getting lower and lower which some buys and suppliers are undertaking their loss.So,they are looking forward to recovery in May.Then what the steel market would be in May?

    According to information,although the price kept going down at the beginning of this year,there is still profit for steel suppliers,that remained their enthusiasm in producing,and also the small volume due to the low price,the stock is increasing.On the whole,the main contradiction is the increasing stock and the weak demand for the market,and this situation would not change in short time.Considering that, NEPA has enacted some policy that the banning of poor quality of steel producing is once again emphasized.In the other hand,the increasing speed for fixed-asset and Real Estate investment is faster in first season.Actually,it is like a “game” for supply-demand relationship,the lower price the lower demand for the market cos’ buyer are waiting much lower price.Therefore,if the supplier keep the enthusiasm in producing the stock would not come down in short period which aggravating the relationship of supply-demand.

    News:it is reported that the central environmental protection group are sent to seven province which is Tianjin,Shanxi,Liaoning,Anhui,Fujian,Hunan,Guizhou to supervise the environment protection.The first central environmental protection group would be sent to Tianjin in end of April,2017 which would last about a month.The control of decreasing steel producing is to be executed more strictly.Due to that,the futures trading market is recovering and the spot market is also getting better and better.

    According to the information above,the sharply down for the price decrease the suppliers profit,some even is undertaking their loss,so the enthusiasm for steel producing might be refrained in future.So the situation would be:customer demand season not-want,but the market downturn might be not happen in the slack season.However,considering the frequently change of futures and billet,we advise the buyers to act cautiously.