Steel prices continue to rise, bearing and rising prices

In August the hot weather did not affect the steel market, after the wave of off-season pull up sharply in July, the steel price does not seem to have a significant levels. Steel prices in August began to pull the futures and raw material prices continue to rise sharply, so the problem is that the season is the cause of steel prices continue to pull up? This next 'golden nine silver ten 'pull can continue? On this point, I will detail the following personal views. First of all, steel prices continue to rise, bearing the price is rising! Figure 1:13 - Building materials prices in 2017 we can see from the chart, starting in 2016, steel prices into the rise range, although the occasional repeatedly, but the overall price is still in the rising trend. So causing prices to rise and what is the cause of, so, in the second half of the market can continue? Second, administrative regulations in the second half of the environmental protection pressure since the July 7, the environmental protection inspectorate has launched the beijing-tianjin-hebei and surrounding areas' 2 + 26 cities round 7 concentration checks. Known as' biggest environmental history, action, beijing-tianjin-hebei supervision and surrounding areas to strengthen prevention and control of atmospheric pollution has 3 months, 28 patrol team examined 32408 companies (including environmental problems Units) 63 to 20602, the problem rate. 6%, show the environment pressure. In August, the country will once again send inspection group for special spot check 'ground bearing steel. 3 it is steel inventories sharply reduce, steel inventory pressure is 2: the picture of the leading building materials steel inventories can be seen from the diagram, leading building materials steel inventories in 2016 - all the time The level of 2017, the lowest level in nearly five years in August 2017, at the same time inventory nearly 60000 tons by 2016, the current inventory of steel inventory pressure drop could even say that is the present state of relative shortage of building materials such steel plant, which makes the price of steel, steel mills at long led to a few years the price of steel is easy to rise or fall. Some people would say to reduce steel inventories, market price will rise to pull? Influence factors of the market price of the stock market and the downstream demand? Four is the market continue to reduce inventory figure 3: building materials inventory we can see from the picture, since the Spring Festival in 2017, the rapid decline in open market inventory model, such as jinan market from the beginning of nearly 120000 tons, has shrunk to the current market is only the amount of nearly twenty thousand tons. The main reason for the market to reduce inventory down to two things: one is steel continues to decline, inventory listed reduce delivery; Second, due to steel prices continue to pull up, the market sentiment rising worries, enterprises' enthusiasm is not high; Three is because prices were going up, the downstream supply costs continue to rise, the downstream pressure not large quantity of funds, reserve. Did not change significantly due to these reasons, the demand condition, the iron and steel stocks and the stock market continued to slide, supply side, most of the demand decrease, prices rise is inevitable. Five, the conclusion based on the above views, steel prices is mainly due to the environmental protection, steel mills, double stock market drop, influence and lift steel mills to grasp the market, can say for each stage, pushing steel mill is always the first. Maybe a lot of people think that the current price is already high, under the influence of worry in high spirits, everyone will think that steel prices will fall, but this early in the year 2017 to now, the price is already we had been in the state of the peak, on the road, despite repeated many times, but overall, especially in the off-season market, steel prices record again this year, further increases the market confidence. View the current steel market conditions cannot be in more than 2016 years ago, due to steel prices have been falling by 2016, so any time in the downward trend, prices are likely to be 'up', so for the inevitability of fear is inevitable. But since early 2016, steel prices in a rising channel. Under the rising channel, price inflation is normal. So in this case, the enterprise should not be afraid of terror, but should adapt. Finally, the price of steel is still likely to rise in the channel, in the second half of the corresponding bearing market on the basis of raw material rise, can only follow ups and downs. In order to take preventive measures, or more common pattern for grazing.