No substantial improvement in demand, cold rolled prices continue to fall

  Yesterday's cold plate index fell 0.36% compared with the previous trading day. As of 10th, the 24 major cities in the country cold rolled prices fell, as follows. 0.5mm cold rolled coil average price fell 4 yuan / ton compared with the previous trading day, of which the Qingdao market price fell 60 yuan / ton. 1.0mm cold rolled coil average price fell 13 yuan / ton compared with the previous trading day, of which the Wuhan market price fell 100 yuan / ton.

Beijing market prices fell yesterday. A few days ago because of last Friday's futures all sealed up, the Tangshan World Park will be expected to reduce production of steel mills, the steel market inventory is low, supply-side reforms and other multiple positive stimulus, there is a steel market weathervane known as Tangshan billet to the daily rate of increase of 120 yuan / ton to lead the entire steel market soaring, but on Wednesday the downstream follow up is not enough, futures fell, the market began to smash the price of the sale, the same is true of the local, and now the downstream wait-and-see turned thick, the turnover Poor, the market began to turn to the buyer's market. Futures disk has a better performance, the spot market and then benefit from the downstream procurement slightly follow up, part of the large stockholders transaction is still available, to a certain extent, to alleviate the market sharply back down pressure.

In general, this price surge is mostly man-made factors, downstream demand has not substantially improved, the market resources continue to digest capacity is not strong. Although yesterday's futures market slightly positive, but the spot market is still mostly wait-and-see, the market transaction is weak. On balance, it is expected that today's cold rolled market will be weak consolidation.

News: in late February 2016, the China Steel Association member steel enterprises daily crude steel production of 1,591,900 tons, an increase of 36,400 tons over the previous period, an increase of 2.34%. According to this estimate, the national daily crude steel production of 2.1140 million tons in this decade, an increase of 2.68% over the previous period.

(Responsibility Editor: Cheng Peng)