According to the survey of 40 steel mills in North China,until August 18, 2016 there are totally1,621,400 tons of steel inventory , 112,000 tons less than last week, the lowest since May 2016.

 

Domestic steel is still at low inventory levels, along with shortage of coke and other raw material, prices continue increasing, steel milles seems to have enough reasons for highing costs, continue to raise prices. Baosteel, Wuhan Iron and Steel, Anshan Iron and Steel, Shougang and other mainstream ex-factory price of hot rolled steel in September raise 100-200 yuan / ton, construction steel prices also increase in a few days, all of those makes the fact that steel traders need to pay more to get the goods.

 

In short words, the next three weeks, North China, East China steel will continue to limite production, the steel market pressure for supply and demand fundamentals. Once the terminal needs start, plus funds fueled the steel market is still optimistic ,for the long-term , Expected short-term adjustment after the shock steel, steel prices are still up space.