After experiencing a plunge in early February, the steel market correction seems to be in place to reopen the upward mode. Analysts believe that the profits of steel enterprises continue to expand as steel prices rise, greatly stimulating demand, and the release of demand in turn has become the kinetic energy to support steel prices, the market prospects are getting better.
Steel upstream iron ore market, the main commercial iron ore main contract 1705 in the February 3 crash after the rebound launched very quickly, until today (February 21) afternoon has exceeded 730 yuan / ton, as Highest since May 2014.
Spot market, Caofeidian 62.5% Australian Newman powder price quoted in the day 750 yuan / wet ton, and early February has not yet exceeded 700 yuan / wet tons integer mark.
Iron ore prices rose based on a variety of factors, Shanghai Ai'gang "I love steel network" analyst Liu Peng said on the one hand, after the holiday mineral production has actually increased, but the overall supply increase is still relatively limited On the one hand, the supply pressure of imported mines weakened in the short term, causing a drop in both the port volume and the volume of shipments to some extent. In addition, he also mentioned in particular that with the further expansion of profits of steel enterprises, strong demand for raw materials, iron ore itself structural contradiction between supply and demand has not changed, which also greatly promoted the recent strength of iron ore prices.
Shanghai AIC Steel "I love steel" analyst Xiong Chao also said that the current "bifocal" market appears to be deviating from the phenomenon last week, the domestic coke market generally cut 50-60 yuan / ton, if the steel profits can continue to maintain Good posture, for the "double coke" demand will constitute a support, spot prices rise again will be a big probability event.
Steel futures market, the main thread of the day 1705 contract has been broken through the end of last year before the high 3557 yuan / ton. Spot market, the Shanghai HRB40012mm rebar prices, for example, the latest average price of 3820 yuan / ton, up 460 yuan / ton earlier than the beginning.
Li Dacheng, an analyst at Shanghai Aisin Steel "I love steel net", pointed out that at present the profit of steel mills is in a good condition with generally increasing orders. However, there is a slight mismatch between the rate of demand release and the price hikes. The price is expected to show a rise in volatility.
According to the data recently released by the MIIT, in 2016, the profit of steel industry in China's steel industry increased 2.02 times year-on-year driven by the general increase of steel prices, and the loss of loss-making enterprises decreased by 51% as compared with the same period of last year. Out of the 32 listed companies in the steel industry that announced last year's performance notice, 28 reported profits and only 4 were losing money.
The improvement in profitability of steel enterprises boosted the demand growth and became the main driving force for the steel price increase.
However, analysts also warned the market attention, "short-term steel market in the rapid pull up after the profit-taking mood is also more rich, while building materials and sheet spreads continue to shrink, the market outlook operation still needs to be cautious."
The last one：Steel Association forum reached a consensus: to ensure that steel prices in a reasonable range
Next article：This is the last article
