Does Chinese steel price rise different common: ? Does allow save ゲ  amaranth trade still?

Published on 2019-05-11

 Beautiful intermediary says, american president Telangpuwei coerce is asked for to importing iron and steel with heavy taxation. And in the 20 countries that hamburger holds group peak was met on July 8 on, western country leader expressed the dissatisfaction around steely worker obtain employment in succession.

According to ” wall street daily ” reported on July 11, produce in iron and steel can serious superfluous the China that drives global steel price to drop is in however produce interesting one screen: Although price of great majority heavy goods bear pressure, steely price rises ceaselessly however. If this one trend lasts, cause major effect to global market and political situation likely, at present the difficult unfavorable situation of steely worker still is problem of a of western country popular politics.

The report says, and differ with the past, a lot of evidence shows newest price of this round of steel rises be not build more building to concern with China merely. Regard disease of Chinese industry dense and this country as huge debt problem advocate so of one produce can surplus problem, its itself has variational: When economic situation is relatively pretty good factory utilization rate can rise, current condition is such.

Nevertheless this circumstance appears more complex. Although steel price rises ceaselessly, but integral inflation drops ceaselessly, price of producer of indication great majority keeps balance or dropped what announced on July 10 about data June, but steel price still rises. And whorl steel (by small-sized electric induction normally furnace uses scrap iron and steel to produce) the price this year especially strong. And furnace of this kind of steel-making is this year one of Chinese superintendency branch basically lays a target, superintendency branch is affirmatory already this year in year before make its fall into disuse thoroughly.

The report says, partial evidence shows, this one effort is obtaining result. Although outback city develops the demand of business to maintain moderate level, housing stock falls to also be propped up to building an industry to form, but steely output of China falls compared to the same period.

Supply decrease plus demand dovish, drive this year interest rate of wool of Chinese steely industry reachs the top level since 2008 first quarter, and already successive 9 months are located in 8% above, this is the optimal expression since global banking crisis. Suffer this effect, river steel and treasure steel in endowment appear on the market steely company share price goes up greatly, heretofore of the beginning of the year, the share price of two companies rises respectively 34% with 14% . Differ with the expression of iron ore, iron and steel was protected the much since American general election went up last year.

The report says, china closes stop surplus iron and steel and coal to produce can historical long-standing, but devoid policy is successional, once inflation is elevatory, the yield that is closed to stop can be met again stage a come back. Accordingly, if economic domain reemerges price pressure, this one mode still can appear probably. And OK and affirmatory is, although have certain progress, produce can superfluous case still very serious.

Nevertheless, any progress are welcome. When global leader is immersed in dispute around steely problem, the evidence of a few progress that China appears, even if again negligible, the investor that also can let pay close attention to condition feels gratified.