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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.

Viewpoint 1: On the demand forecast, excessive interpretation of the policy, and under the influence of  hype, steel inventories on the market, steel prices fall.

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".

Viewpoint 2: Respect the law of value, according to the laws of the market, is to maintain the  fundamental guarantee of market stability.

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.

Viewpoint 3: The overall steel market will be characterized by tight trading range this year.
Steel prices from the previous year's "cliff" fell to last year's value of return, and then to the recent  "diving", in essence, is the value of the return journey of a repair process. Steel prices will be with  the gradual realization of China's economic transformation, rhythmically running in the appropriate  range. From the big trend, this year's steel market price should be a value to continue the process of  repair. May Day after market prices sharply rise, terminal engineering to procurement, market clinch a  deal the splurge produced. However, in this process, the high turnover is not ideal, indicating that  short-term steel prices easy to touch the top down, the overall performance of steel prices within a  narrow range, or this year is also the overall microcosm of steel market operation.
Shinestar holdings group as a steel procurement overall service providers, will continue to focus on  steel market dynamics. At the same time, we will also develop high-quality straight seam carbon steel pipe, open  flat, steel springboard, hot-rolled plate, scaffolding and other products, to provide the best service.