Because in the three quarter a variety of stimulating consumption and investment policies gradually enter into the implementation phase, especially railway fixed asset investment increases significantly and open financing to civilian endowment, the domestic steel demand may be warmer. But from another point, economic growth does not mean steel demand increasing, excess capacity still is the difficult problem
which suppresses the steel price rising. In fact, increased supply is faster than demand picking up. In foreign countries, the recent domestic rebound of steel price reduces the price advantage of exports, and with the effect of Christmas nearly, Europe dosage show slowing trend. So, many domestic steel mills will transfer production center to the local consumption in the four quarter.
In addition, now is the second half of October and the climate turns cold, this is not conducive to outdoor works. So, the north steel demand will shrink substantially, at the same time, it will lead to a lot of resources flow to the South market. Many factors are not conducive to high market actively.
Combinating the above situation, the business mentality gradually becomes weak, the bull position is obviously insufficient and that replaces it is actively shipment. Therefore, the recent steel price becoming weak will become the norm. With the change of the weather, coolness of steelprices becomes stronger an stronger.
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