EXPERTS PREDICTED THE PRICE OF STEEL IN CHINA 13-17TH MAY 2019

Time: 2019-05-16
Summary: EXPERTS PREDICTED THE PRICE OF STEEL IN CHINA 13-17TH MAY 2019

My steel: Last week, domestic steel market price shocks weakened. For the follow-up market, first of all, the stock of steel enterprises began to increase gradually, and the current billet price is relatively high, the enthusiasm of steel enterprises has been reduced, or it is difficult to increase significantly at the supply level. By mid and late May, the market demand has weakened to a certain extent. Business operations mostly maintain cash on delivery. In addition, the market mentality was empty before, so it is difficult to change the stock operation mode in the short term. At present, the decline in inventory has narrowed, while the stock cost is still high, so the price is in a dilemma. Overall, this week (2019.5.13-5.17) domestic steel market prices maybe maintain volatile operation.

Han Weidong, deputy general manager of Youfa Steel Pipe Group: The United States has announced a 25% tariff on China’s imports of $200 billion of goods, and this week it will publish a list of tariff increases for the remaining $300 billion. China will soon announce counter-measures and start a war on Sino-US trade. Sino-US negotiations range from truce negotiations to bilateral talks. This heavy trade war will have a significant negative impact on China, the United States and the whole world. The market continues to be weak and volatile. What we can do is to follow the trend, operate steadily, control risks, focus on the impact of trade wars on global financial markets and market confidence, as well as the strength of market demand and changes in social inventories. Of course, we should also pay attention to the change of output restriction by pumping. Nevertheless, we can only say that the market is in a turbulent state, and we can’t confirm that the market is falling unilaterally.

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