Steel demand with the arrival of the winter continued to weaken, but steel prices in the last two days began a nearly "crazy" rise. A number of industry sources have said that this is rare in recent years.

 

December 11th, according to the news, Shagang, Yonggang coincides with the price adjustment cycle, rebar prices rose 150 yuan / ton; three steel rose 150 yuan / ton; Shanxi leading steel mills up 50 yuan / ton. Tangshan Handan and other wire companies rose more than a single day, Shandong, Tangshan and other places of the thread business rose 50 to 80 yuan / ton, structural steel prices of some manufacturers 100 to 150 yuan / ton.

 

Some people analyze the most direct reason is December 9, some local news of limited production in the spot market, some people to carry out the speculation. Coupled with other large background reasons, so that steel prices rose sharply in the past two days. The future in the short term, steel prices will remain high and volatile.

 

Uncertainty expectations

 

Steel prices for December, the steel market had long been psychologically prepared. Xinhua News Agency in early December cited the relevant institutional analysis, in December, the domestic steel market will face the pressure of weakening demand, but the high cost, steel mills and other factors under the influence of domestic steel prices further higher power still exists, Strength remains to be seen.

 

However, the last two days of steel prices continued to rise, fear has exceeded the psychological expectations of the parties to the market. The latest report released by the organization also shows that the Tangshan billet ex-factory price, for example, in the December 10 rose to 2990 yuan / ton (cash tax), 11 afternoon, and then up 100 yuan / ton, the local part of the steel Ex-factory price has to 3090 yuan / ton (cash tax).

 

Experts say the direct cause is the current air quality environment, the market has limited rumors in some places. Some analysts added that such a sharp rise in a row, the first reaction to the steel market is still a partial positive state. At the same time, the state in the investigation of steel production capacity, which the steel market supply and demand will have a relatively large impact. Steel market uncertainty about the future supply of steel is expected to lead to rising steel prices.

 

Short-term will show high and volatile

 

Relative to the rise in steel prices, the market are multi-party proposed short-term domestic steel market prices will be higher or higher shocks shock-based.

 

Institutions released the latest report is expected, the recent domestic steel market, the overall trend of the strong run in the short term is difficult to see a substantial decline. From the cost point of view, the price of raw materials of steel is still high, coupled with the policy impact and the steady upward billet prices, gave the steel mill caused some production pressure, which may lead to steel mills continue to raise spot prices.