Domestic steel prices: the domestic steel prices continued to weaken this week, Carbon steel prices in all down. Changes from the monthly view, the main varieties of the domestic steel market fell slightly, but the three-month price changes of view prices are still strong.
The price of vanadium pentoxide and vanadium products in nearly two weeks to recover, glue stick rising sharply this week, is expected to leave coming to an end in Europe, post-demand or prices will start rising is one of the reasons vanadium.
According to the survey Mysteel, traders and steel mills reaching unanimity: the subject of investigation, about 59% of that steel prices will be high consolidation, glue gun 41% of the bearish outlook.
International steel prices: the international market this week, steel prices will remain stable, but the CRU steel price index system, index of flat material, in addition to other indices outside about 1% appears slightly down. LME steel billet futures prices closed at $ 845 / ton, down 7.7% last week, a record low, futures seem generally pessimistic expectations. Consider the export tariffs on major domestic and foreign varieties of steel after the effective spread reached a record high.
Raw materials: the domestic coke prices will remain stable this week, nearly 1.6% in January to gain only, but market feedback to see the supply of coking coal and coke situation is still grim, we are concerned about the latter part of the coke price trend. Western Australia this week, Brazil to China iron ore sea freight route in the back up after last week declined slightly, BDI index continued to decline 4.1%. Nickel prices fell again this week, 1.8%, some analysts believe that nickel prices have bottomed out or even oversold.
Inventory: Inventory little change this week, and the same period last year, most of the inventories in an increase of 10% to 70%; than the average three-year history of stocks increased by 10% or so. Overall, the steel stocks stable.
Week Comments:
Seasonal consumption of off-season is the main reason for the domestic steel prices fell, which caused concern is the demand for iron and steel sector was the main motivation is poor, we believe that domestic steel prices will remain weak in August, in reporting the results in the expected high growth in iron and steel shares no obvious catalyst for short-term factors.
Although the domestic steel market, filling short-term weakness, from the high cost of production and operation of international steel prices, steel prices later limited space, is expected to 9,10 after the Olympics the season on the coming of steel consumption, steel prices will have a better performance.