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Steel production enterprises should ignore the "false demand"
Release time:[2016-6-28] Browse the number:3271
To market-oriented production capacity is in line with the practice, due to market recovery and increase production, the surface is a market-oriented, but in fact, in April prices of commodities touted just wave over oversold bounce, the so-called market rebound , based only on speculation demand pseudo-driven.
Iron and steel enterprises to production decisions and actions being questioned. According to sources, the local passive capacity to increase production operations being disrupted by impulse, some provinces were reduced steel production increased real.
In fact, increasing the yield more than steel. The first four months of 2016, in addition to average daily production of coal declined in April, the cement, colored average daily production is continuing to enhance. Although production capacity and output is not a concept, but the medium to long term, the capacity to ultimately must implement to reduce the production, this relationship will not change.
Steel prices increase retroactive reason is not difficult. It should be said, the April futures market rebounded sharply commodities brought about "pseudo demand" is the most direct cause of the increase in production of steel and other commodities. Shanghai Futures Exchange data show that in late April, the rebar futures contract prices compared with last year soared 72 percent, up to 2787 yuan per ton. Futures market madness led directly to the spot market, a lot of ex-factory price of steel rose as high as 3,000 yuan per ton, affected by the steel companies not only have the will to speed up production, discontinued businesses have begun to resume production. However, due to the market demand is not strong, the above approach is clearly shortsighted.
