metalbiz888
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Since New Year’s Day, domestic steel market welcomed 2010 with the good state. The steel price climbed gradually, which made traders confident in later steel market and expect price hike further. However, some traders seem to notice the potential risks in the high price and take solutions as well as adjust marketing strategy to resolve risks.
At the beginning of 2010, the steel market is boom. At the first trading day, the steel prices increased overall everywhere. Within a week, the construction steel price hiked more than 100 yuan per ton averagely in some regions, especially the heavy and medium plate market, the maximum increase up to 200 yuan per ton and other steel prices such as CR plate, HR plate, I-beam, channel steel and angle steel also went up. The steel market became hot again.
Actually, the rising market was lack of the demand supports from downstream industries. Especially the construction steel market such as debar and wire rod, presently it is the off-season of the demand due to the cold weather. However, as seeing market recover, steel mills’ enthusiasm in producing did not reduce, some medium and small steel mills operate with full capacity. The high output of the steel mills caused the huge social inventories and the frequent price lifts led the high cost of resources. Under the situation of the low demand, the high production and huge inventories aggregated the high risks of the market.
Once the market changed slightly, the market tendency would alter instantly. On January 7, the future and electronic-exchange markets went down suddenly, which affected spot market soon. Traders felt panic and the mind was not stable.
At the beginning of 2010, the steel market is boom. At the first trading day, the steel prices increased overall everywhere. Within a week, the construction steel price hiked more than 100 yuan per ton averagely in some regions, especially the heavy and medium plate market, the maximum increase up to 200 yuan per ton and other steel prices such as CR plate, HR plate, I-beam, channel steel and angle steel also went up. The steel market became hot again.
Actually, the rising market was lack of the demand supports from downstream industries. Especially the construction steel market such as debar and wire rod, presently it is the off-season of the demand due to the cold weather. However, as seeing market recover, steel mills’ enthusiasm in producing did not reduce, some medium and small steel mills operate with full capacity. The high output of the steel mills caused the huge social inventories and the frequent price lifts led the high cost of resources. Under the situation of the low demand, the high production and huge inventories aggregated the high risks of the market.
Once the market changed slightly, the market tendency would alter instantly. On January 7, the future and electronic-exchange markets went down suddenly, which affected spot market soon. Traders felt panic and the mind was not stable.
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