Experts in China warmed that the inventory in China has risen to a high storage. We should prevent capitalists from driving up the price deliberately.
To solidify the achievements of cutting capacity, and improve the efficient supply of steel, in recent days, National Development and Reform Commission, Ministry of Industry and Information Technology, General Administration of Quality Supervision, China Banking Regulatory Commission and China Securities Regulatory Commission has issued a notification regarding to accelerate the operation of steel market in a balance condition by further ensure to implement the principle of encouraging the growth of some sectors while discouraging the expansion of others. The notification stated that with the efforts of different parties, steel price in China were recovering and the output and sales of steel manufacturers were on the mend. However, in recent days, the steel price were going up significantly both in spot market and future market in a short time.
The notification required large-scale steel companies should continue to lead the industry, and to set mill price of steel scientifically, to guide the price in a reasonable range.
Some analysis said that since 2017, steel price in China has been surging. Especially after Spring Festival, the price in spot market and future market jumped significantly. However, the demand did not change. Thus, relevant departments of China were worried that the price would repeat the same history as the surging coal price, and the notification was made to steady the market.
Introduced by an industrial insider, since Spring Festival, the price started to soar. Based on some data, SHFE screw thread steel price was 3,391 Yuan per ton up to Feb. 15, up 8.93% versus Feb 3rd, up 18.94% compared with closed price 2,851 Yuan per ton on Jan. 3. The data showed that up to Feb 15, the hot rolled steel closed 3671.48 Yuan per ton, up 8.63% versus 3,379.78 Yuan per ton in on Feb 3, up 11.06% versus 3,305.85 Yuan per ton on Jan 3rd.
"In fact, industrial insiders all know that the inventory of steel in China is still large.” The insiders said that profits of many manufacturers are float profit now. Actually, the inventory of steel reaches the same level as that in 2015 and it’s expected to go up in the future.
The data on Mysteel.com shows that up to Feb 10, the overall steel inventory of China totals 15,788,000 ton, up 17.06% and 2.3039 million ton versus that in previous week, up 54% and 5.57758 million ton versus that in last month. The inventory of screw thread steel is 8.2096 million ton, up 3.0964 million ton versus that in last month. The inventory of wire rod is 2.47 million ton, up 1.1748 million ton versus than in last month.
