Rebar,Stainless steel sheet,Hot rolled coil,Cold rolled shee.
|Steel rebar slumped while sheet up in automobile boom|
Some may think recent future price slump is attached closely to the “Black Swan” issue, but beyond doubt China domestic steel market is getting worse.
Since the middle July, China total inventory of five major steels including deformed steel bar, hot rolled coil, cold rolled steel sheet etc., has been kept increasing for 8 weeks. By Sept. 9, the inventory of the five steels added up to 9.64 million tons, gained 13% from the 8.52 million tons on July, 15. On the contrary, steel production shows no obvious decline.
Domestic real state investment and new-start engineering growth show downtrend since May this year, and even infrastructure construction growth has gone down since July, which will hinder steel rebar consumption. The “busy season” is more like to be a dream to steel traders and producers than a yearly boom.
However, steel sheet products can be a silver lining for steel industry when domestic automobile market slumps from last year low point. Besides, household appliances also see better market. Thus, cold rolled steel sheet, galvanized steel sheet and other steel plates have better demand.
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