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time2016/01/27
Low price of steel products still remaining prestige in the new year.
2016 the whole steel market has a great probability to rise in Price
From exporting demands,The mainstream view is that in 2016 the US economy will continue picking up.Economic recovery in developed countries towards Europe, especially the strong real estate and auto sales, help to increase international market demand for steel. In the new year, the yuan and the US dollar decoupling, moderate depreciation against a basket of currencies, China's steel exports will also increase competitiveness. Is expected in the new year, China's steel export demand remains strong, the total exports of not less than 80 million tons, there may still be more than tons of scale.
From source supply,2015 domestic steel companies to cut prices as sales, as a main means of competition, to defend market share, even squeeze additional market share. So, although the national steel demand down, but steel production increased rather than decreased, the market supply of resources increasingly heavy pressure. On the other hand, supply continued downward pressure on the price of steel, some companies even lower than the cost line, the steel industry profits thus declined significantly, a serious loss, naturally makes 2016 China's steel enterprises increase price space narrowing, Forced steel companies cut production . Moreover, in the new year, the implementation of economic decision-making layer is disposed tasks required to resolve excess capacity, clearing "zombie companies" to reduce the loss of subsidies, how much resources will suppress excess steel supply pressure, which makes the oversupply situation in the steel market trends slow
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