The fixed assets investment continually increasing

According to data released by the national development and reform commission, 18 fixed assets investment project has been approved in January, involving 153.9 billion CNY of total investment. The cumulative growth rate of investment in construction was 10%, up 0.9% from previous month, rather than reduced as usual. The data showed that fixed assets investment was still increasing. In our field research, we found that railway construction started early after spring festival. The project progress also accelerated.

The steel demand top in March 2017

From supply and demand of steel market, the steel demand peak is still in March. In the field research, many steel enterprise have already got the orders for 2017, such as carbon steel plate，reinforced steel rebar and other orders They have enthusiasm to produce and stock steel product. By February 10th, the domestic social inventory of steel rebar was 8.08 million tons, up 46.28% before the spring festival. On the one hand, the steel enterprise transfer steel product inventory to traders. On the other hand, the steel traders express optimism for later steel demand, and willing keep the inventory. Steel product inventory do not rise significantly. By the end of January, steel product inventory was 14.15 million tons, 14.95% higher than before spring festival. Because the inventory was not too high, so the steel enterprise want to keep steel price rather than sell steel product at low prices.

Steel enterprise adjust own procurement policy while ore price changes

A part of steel enterprise resumed production. With the iron and steel ore inventory of steel enterprise reduced, the purchasing power of steel enterprise will increase. At present, iron and steel ore price have improved. Because the probability of large increase in iron and steel ore, steel enterprise should adjust their own procurement policy.

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.