Steel product price displayed a rising trend

In the data, the whole steel product price displayed a rising trend since 2016. As of October 21^st, the steel product composite price index rose 19.17 to 79.00. The key steel product price, such as high line, deformed steel bars,  hot rolled coil plate, respectively rose 27.4%、27.9%、44.9% year on year. The whole level of steel inventory was lower than last year. According to statistics, China main social steel inventory dropped 8.3% to 9.4 million tons year on year by the end of September. It increased 0.79 million tons at the beginning of the year, an increase of 9.2%. As the weather turns  cold, the fourth quarter of the steel product market gradually into the off-season demand. Social steel inventory will rise, but the whole level will be lower than last year.

Raw material rapid rose influence benefit of steel plate manufacturer

It was worth noting that the raw material phased price rose too fast to influence the profit of steel plate manufacturer. According to statistics, as of October 14, coking coal and metallurgical coke prices rose by CNY 507 and 849  per ton, up 81.4% and 126.2% from the beginning of the year. At the same time,  an increase  was 36.1% for steel price.

The government provide better support for steel plate manufacturer

In order to strengthen and enlarge a better trend of steel plate manufacture, the government will focus on  three aspects  work:

First, to deal with the relationship among steel capacity, structure adjustment and transformation promotion.

Second, to create a fair and orderly steel product market environment.

Third, to follow and analyze the price trend of steel plate manufacture, strengthen the prediction and prejudgment, ensure the steel plate price stable at a reasonable range.

Steel plate manufacturer reproduction speed up.

According to analyst, the steel plate market demand changes in new order and cost changes in purchase price index get significantly better, such as carbon steel plate. It showed positive factors of steel plate market gathering. The index showed that the reproduction of steel plate manufacture was accelerating. In February, the steel industry production index continuously rose three times to 49.5%, 3.9% higher than last month. The purchasing activities related to production appeared obvious expansion trend. Purchasing volume index increased 5.5% to 50.4% in the month. It returned back to the line more than 50% after 15 months, reached the top point since November 2014. The import index of raw material was 52.6%, up 0.9% from last month. The raw material storage index rose to 51.1%, the highest point since February 2015.

From the actual situation of steel plate production, the loss of steel plate manufacture had been reduced recently, but most of steel plate manufacturer still in loss status. Industry funds remained tight. In addition, the current material market keep strong pattern.

The steel market cost support enhanced.

At present, the cost support of steel plate market clearly enhanced. In February, the steel plate purchase price index continued to rebound, and sharp rose 11.1% to 49.9%, reached the top price since January. Imported ore and steel billet price had strong growth after the Spring Festival , and imported ore price reached $51.2 per ton. It hit a new high of nearly four months on February 20.

The steel products demand will be the key for final trend of steel plate market

According to the related index report, the current steel plate market was under effect of “two low”, the low yield and low storage, and support increased at the policy level, it had formed a strong vibration pattern in short time. For the latter steel plate market, the steel products demand will be the key to determine the final trend of steel market. The market supply pressure was gradually highlighted.