The progress of cut excessive industrial capacity is fast and prices at steel plants are stable. By the end of May, the capacity of crude steel had been reduced to 400 kt or so. Finishing 84.8% of tasks of the year . The progress of cut excessive industrial capacity exceeded expectation, which meant that room to cut capacity will be limited later.
Besides, the Federal Reserve completed the interest-raising movement. As the expectation on interest raise has been digested, the commodity market was not greatly impacted . The operation rate of blast furnace around the country was 77.35% on June 16, started still no decline.
Inspired by the price increase of billet of last week, most steel prices rebounded last week. Now steel plants hold prices firm. As the interest-raising was finished, substandard steel will be bearish. With cut excessive industrial capacity progress exceeding expectation, steel plants can still fight for profits.
However, traders hold moderate intention to accept the price and market transactions were poor. The steel inventory fell slowly. In addition, market analyst in CAMELSTEEL found out that demand at slack season and growth rate of fixed asset investments of macro data fell off, showing that the demand in the second half year will be sluggish and price will fluctuate at highs.
CAMELSTEEL consistently carry out the policy of “Customer first, employees of the second, third shareholders” and the tenet of “Treat people with sincerity, start business with trustiness”. We insist brand building of main line, market demand oriented, not afraid to innovate, keep providing the first-class service and quality products for customers indeed.