Shinestar Uncover the "Routine" of Steel Market
As a DSAW steel pipe, open flat, steel springboard, hot plate, scaffolding and other products of the production service providers, Shinestar holdings group published some views according to 2017 steel market, steel industry and how to maintain market stability problems.
First, the current fundamentals of China's economy is good, some emerging areas of steel demand corresponding increase in the market a substantial increase in inventory, resulting in steel prices fell. Second, the implementation of national policy to the production capacity, many iron and steel enterprises limited production, production, steel trade accordingly made the market in short supply to judge. Under the influence of this expectation, steel trade enterprises continue to increase inventory. Third, house prices rose sharply, stimulate the construction steel prices soared, thus promote the overall steel prices. Steel trade merchants began to increase, according to the cargo, and look forward to the Spring Festival after the steel price rise as expected. Fourth, due to the general reduction in inventory on the market, the market stocks and prices showed a proportional relationship, this time, enterprises to increase inventory is equivalent to increase efficiency. Coupled with some people on the relevant policy of excessive interpretation, triggering a steel trade to increase the inventory of the "herd".
First, in the process of removing excess and backward production capacity, we should give full play to the role of the market only "invisible hand", supplemented by administrative means of guidance and legal constraints. Second, through administrative means, legal means and the combination of market rules, and resolutely ban high pollution, high energy consumption capacity. Third, we should widely publicize the party's principles and policies, promote the socialist core values, improve the trade ethics and social responsibility. Fourth, call for the majority of steel trade workers care, maintenance of steel market order, to reduce human speculation and other undesirable phenomena, work together to maintain the healthy and stable development of steel market.