So far this weekend, the construction steel market can be described as choppy, prices all the way down, which is a larger decline in the region for Shandong, Shanxi, Henan and other markets, down to 80-220 yuan / ton. For example: Shanxi Shougang Changzhi 18-22mm three rebar prices from last Friday's 3590 yuan / ton, down to today's $3410 / ton, down 180 yuan / ton, down to 5.01%.
“ four gold and three silver ” this should be the construction steel prices high and a good deal for a period of time, but the frustration is the construction steel prices over the weekend has plunged more than, and currently do not see to turn. The reason why such a large scale, a substantial decline mainly affected by the following three factors: first, the difference between futures and spot. Secondly, the plate and screw spreads again increased. Finally, the market panic, the price decline is the process of releasing panic.
Short futures strong forces
With the main contract for the period from 1705 to more than $17101705 in the contract to do more than a large number of short contract to 1710. First, the market is not optimistic about the market outlook. Secondly, the current price is already high, the profit is limited. Finally, with the hot rolled coil futures prices fell, the screw and rolling spreads widened again, has reached a state of imbalance, the screw down sooner or later, so in order to reduce the risk of multi start shorting thread, resulting in the falling prices.
Plate and screw spot price difference
Recently, the lower demand for hot rolled coil, and futures prices are flagging, resulting in spot prices all the way down. In contrast, construction steel prices are relatively stable, but this is not a normal situation, and the prices of construction steel plate was dragged down sooner or later, so it appears the current construction steel prices continue to fall. The current spread of rebar and hot rolled coil shrinking gradually to the normal level, but this year compared with last year is different on the whole or the steel plate volume, and earlier in the re production of steel construction steel is a strong proof.
Market panic surge
With the price of the snail and spot construction steel prices continue to decline, the hands of the spot traders panic surge, and the market outlook is not optimistic about the future, and began to lighten up to reduce the risk. However, traders continue to increase preferential delivery, but also means that the market price continues to refresh low. At the same time, the number of traders to clear inventory from the steel orders will be reduced, steel stocks continue to rise, the financial pressure will come up, in order to return the funds and reduce the risk to the down steel product prices, resulting in stock price falls again.
Market outlook
Now the market is in a frenzy, although some mainstream steel prices to hold prices, but whether it is large or small steel traders all want to cash in the hands of the resources, leading to the construction of steel prices continued to decline, it is difficult to stabilize. Moreover, the current futures market is still relatively large short power, we are not optimistic about the market outlook. Downstream demand continues to release, but it is difficult to form a driving force to drive up prices, so on the whole, the construction of steel prices in the short term or will continue to fall.
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