In September, the price of precision steel pipe entered the traditional peak demand season. With the continuous stabilization of the domestic macro economy, the steel demand in the peak season improved, and the cost continued to strengthen the support for the price of precision steel pipe in the later period, which became a positive factor for the price of precision steel pipe in the future.
In addition, it still needs to be noted that recently the market for the United States will exit QE expectations rising, China's hot money has begun to outflow phenomenon, in June and July China's newly increased funds outstanding for foreign exchange decreased for two consecutive months, market funds interest rate continued to maintain a high level in August. With the central bank saying it will continue to implement a prudent monetary policy and little chance of a major adjustment, the cash crunch is likely to intensify in September. Expected in the consumption season support, rebar will maintain strong shock pattern.
To sum up, the traditional consumption season is approaching, the new order of precision steel pipe price is good, the growth rate of real estate and railway infrastructure investment is expected to accelerate, but steel mill profit recovery, the future capacity utilization is expected to further improve, in the destocking in the future potential supply is sufficient.
Current social inventory decline has slowed, steel to inventory is coming to an end, but the early good policy in July and August in advance drive the market rebound, overdraft after peak season demand release part of precision steel pipe prices space, so it is supposed that the Mid-Autumn festival precision steel pipe prices will be more moderate, volatility rose slightly, sharply rising probability is small.
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