Review of China's steel prices in 2016, has experienced a rise in the first quarter, falling in the second quarter, third quarter concussion rose slightly, began shock rise into the fourth quarter, the overall profit has got improvement. According to the current raw material product price comparison relations, steel mills have a small profit, the coal industry profits in good condition.
Shinestar steel research institute predicted that next year the domestic economy stabilises, turned to the steady monetary policy, focus on inhibition of asset bubbles and guard against financial risks. As a result, the market game could turn into a policy game, black tie commodity market volatility will increase. External aspect, the depreciation pressure will be largger; Internally, the supply side gradually accelerate structural reform; And infrastructure construction has a great potential demand in Asia, Europe and the United States and emerging economies developed economies infrastructure upgrades will bring more opportunities, black series product prices logic could be evolved from the supply side of booster for the push on consumer demand.
At the same time, the uncertainty of Trump was elected President of the United States, the European Union member states factors such as bankruptcy, or will lead to global debt or local financial crisis, demand side can lead to weak, which affects commodity prices. In addition, real estate is one of the largest terminal black series product demand, real estate speculation are suppressed, "area" construction is expected due to investment, long cycle, more difficult to make up for short time and replace the real estate market needs of rapid change. Domestic and social excess liquidity will be poured into the futures market, fry high spot market at the same time, the need to guard against a periodic extreme raw material market.
Black series products especially coal, in the second half of this year the price rise is bigger, brought together a certain risk. But become a relative shortage of coking coal resources, especially after a market-oriented elimination in recent years, the state-owned coal enterprises in improving the assets and liabilities, expansion willingness and ability is not strong, difficult to apply for a loan from the bank, on the verge of bankruptcy private enterprises cannot fast recovery capacity, supply increased dramatically, hard coking coal supply and demand is expected to relative balance as a whole. Iron and steel enterprise operation situation is not optimistic at the same time. With the advancement of environmental protection and nature to capacity, the steel supply is hard to continue to effectively increase like this year, iron and steel enterprises is expected to present certain improvement in operating performance. Shinestar steel group will make persistent efforts, and constantly provide customers with more high-quality line pipe, spiral welded steel pipe, stainless steel pipe, scaffolding, etc.
Shinestar steel research institute believes that the iron and steel enterprises in the procurement, need to scientific research market, grasp the market opportunities and benefits, positive for purchasing and make the effect; Steel sales department must be good at seize effective order, the production department to keep steady production, continue to produce line pipe, submerged arc weld spiral welded pipes, stainless steel pipe, scaffolding, etc. The company which have conditional and basic, could participate in hedging appropriately, but must keep smooth operation, watch the market risk.
