Galvanized pipe prices fell below the bottom line can rebound?
Spiral pipe fittings prices continued downward, traders expected the market has basically dropped the bottom, not much room for further decline late, the rise of the concept of store goods, leading to a rapid increase in steel inventories. However, sales of steel prices continue to decline, it is to break this illusion, because the market is still the oversupply situation, and declining costs for steel prices are still falling further promotion. Statistics show that in January China imported 86.83 million tons of iron ore, an increase of 33.03 percent, an increase of 18.33 percent, the highest level. Imported iron ore port stocks also rose sharply, again reach 1 million tons, an increase of 10.72%.
In the case of spiral pipe pieces downstream demand has not fully started, the stock market outlook significantly increased pressure on steel prices, steel spiral Price obviously under great pressure. Statistics show that last week, Steel Association CSPI composite steel price index was 97.33 points, its lowest point since May 2009.
The main varieties of steel prices have declined. In late January, the eight varieties of steel China Steel Industry Association of monitoring, the relatively large decline in long products, high-wire, rebar prices chain fell 84 yuan / ton and 106 yuan / ton; price from a flat angle to down, down 13 yuan / ton; hot-rolled flat steel prices from up to down, plate, hot rolled coil prices chain fell 40 yuan / ton and 43 yuan / ton; cold-rolled sheet, spiral steel pipe fittings and seamless steel parts prices continue to fall, but the decline has narrowed the previous month, down 25 yuan / ton, respectively, 21 yuan / ton and 21 yuan / ton.
Galvanized steel companies and steel pipe fittings trade enterprise funds tight, restricting the recovery in the steel market. Since the state has increased efforts to control overcapacity, universal banking system for loans given to the strict control of steel companies, steel trading business is the focus of banking supervision. Late steel companies and trading companies will continue to face difficulties in financing, high cost of financing difficulties of recovery in the steel market will have an impact.
