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Market Summary 17th,May

201

           Cold rolled down $30 / ton on Monday, but Chengde,Hong Wang two large joint steel prices, the price is not less than $1195/ ton.Manyagents reflect that some of the market is out of stock, so the next period oftime, the price will be eased. With the rise of market turnover, which stimulatesome people ‘s desire of "transaction is trying to pull up ‘’, but it isdifficult to make the transaction. According to steel mills, both inflation andslump are not healthy markets, they are likely to cause greater harm.Therefore, stability of the market is the first priority, it’s not Notrecommended that rise the price when the market is just stable . If have no basisfor price increases, when the market up and down, it would make the confidentpeople’  continue to be damaged again .Due to the

support from four large steel, steel price, agent all rose $15/ ton,cold-rolled guidance price $1225/ ton, but the

transaction has not beenunpopular situation, so the pull up also need the test of time.

304

Low market resources, coupled with some steel millsalso lowered the guidance price , Some agents on spot market and steel tradingbusiness sell with low profit . After Lun Ni night plate rebound, the markettrend has stabilized, and even steady rise, the four major cold-rolled steelmills reached a consensus on the price of cold rolled ,

rather cut production norvicious competition. With the decline in inventories, these days ,the markettrend to be stable , even cold rolled guidance prices rose to $1865/ ton. Whileafter May we will enter the traditional off-season, but the stainless steelmills overhaul production is more intensive, the actual supply side has beentightened, or will be conducive to market stability.


                                 430

The cold rolled price of the mainstream producingareas generally appears weak and small decrease , and there has been a slightdecrease in individual producing areas in hot rolled. According to the feedbackof the market, as the market is weak, the market upside down for a long time,weak demand, market transactions scanty, low-cost resources are frequent, sothe pressure to return the funds is no longer the first task of the end of themonth , at the beginning of the month we also concerns this point. High carbonferrochrome crash, to the 430 whose transaction is not smooth , it is no doubta hard blow. According to the current trend, it is expected in the short termthe market is still difficult to reverse the situation! As the market spotresources are limited, prices tend to be stable.


We compared the current raw materials, and the end oflast year, the highest point cold rolling 18000 yuan / ton (2016.12.16) period,raw material changes.



Compared with presentmaterials and the period (2016.12.16)with top price at $345/ton.

At that time, the priceof nickel iron was $240/ nickel, and the monthly price of chromium iron wasgenerally $1485 /50 base ton. Now, the price of nickel iron is $215/ nickel,and the price of chromium iron is $1260/50 base ton. So, in general, the priceof stainless steel fell by $670 / ton, and the cost of nickel and chromium, thecost fell by only $290 , nearly $370 / ton.

In contrast, the price ofstainless steel fell, far more than the cost of decline. Here are threequestions:

The end of the year, thetide is expected to stockpile, the last round of stainless steel pushed toohigh .

At present, the price ofstainless steel has been affected by the panic, and has completely eroded theprofits of steel mills.

The current price has fallen below most of the cost of steel price,belong to the oversold.