March outbreak of domestic steel city poised somewhat surprises, but everything again within reason. Years after the rise in inventories has not fully become a burden on business, but, with the iron ore and other raw materials prices, making the cost of steel line is 11 breakdown, forcing prices have elevated, thus supporting the steel in the a short time appeared to rise more Earned momentum. Sub-species perspective, this month, building materials market rose 400-430 yuan / ton, hot and cold, the board accumulated on the red 400-500 yuan / ton. As follows:
    Wire, rebar: This month the national building materials market is clearly warmer. Recent Quotes able to continue to rise mainly based on two aspects, one is the rising cost of steel production shifted to the market, thereby directly promoting Quotes of the higher; other hand, "15" In the future the weather is heating up and outdoor projects have launched, the demand amount of were gradually opened, along with the price began to recover, the market liquidity between the increased support of higher steel prices are naturally duck to water. As of the end, it was intended to reach steel information network to monitor the nation's major municipalities, provincial capitals, cities Φ6.5mm average price of high-speed wire 4287.39 yuan (per ton, the same below), Φ18-25mm rebar average price of 4242.61 yuan, respectively, compared with the previous month rose 406.96 yuan and 416.52 yuan. Around the market, in east China Shanghai, Nanjing, Hangzhou market is constantly higher, Yonggang, sand steel steel policy to accelerate up, allowing merchants pull up the psychological and loneliness, some behavior is more reluctant sellers, is to accelerate the pace of upstream Quotes. End of the month, the Shanghai 6.5mm high speed wire 4270 yuan, and Shanghai Bao-18-22mm thread 3950 yuan, from the previous month at the end of (the same below) was up 310-350 yuan. North, Northeast, South and Southwest and other places have risen sharply in Shanghai in the lead, driven by the first pull-up in collaboration with various regional steel price increases, as well as improvement in market transactions, traders continuously offer pulled. Guangzhou, Shaoguan Iron & Steel is now pileare 4360 yuan and 4290th yuan, Wuhan, Hubei steel pileare 4230 yuan and 4180 yuan, up 310-460 yuan; Beijing-Tianjin Market Wire in the 4420-4430 yuan Shougang, Tangshan Steel screw in 4420-4480 yuan, up 540-680 yuan, Chengdu, Chongqing wire for 4320-4350 yuan 4400-4420 yuan for the thread. Latter case, the following may be running will be the formation of the domestic building materials market effects: First, there is news that CVRD iron ore requiring customers to accept the April-June increase 114.4 percent, to 122.20 U.S. dollars per ton. Three mines in this year would most likely have to adopt a "spot sales of the main, supported by part of a long association," a mixed pricing strategy. Second, the recent, Premier Wen Jiabao told the meeting that the need to standardize the field of state-owned enterprises in the real estate investment behavior, improve the land use right in the open market trading system. Third, the 25 inter-bank market, the central bank will issue 160 billion yuan in March period of the central vote, circulation has increased by 300 last week billion, a record in March for the third straight week period in the history of the central ticket distribution history of a single weekly circulation of a new high. Fourth, as of Thursday, thread 1010 contract closed at 4796 yuan / ton, an intraday high of 4814 yuan / ton, period prices hovered below 4800 RMB has been 7 business days. Fifth, Sha Steel, River Steel Group prices have surged on market prices continued to boost the formation of a strong, short-term high iron ore operation, will provide strong support for the follow-up steel prices. Well, supply and demand can not fully determine the situation of price movements, the cost of the promotion will continue to play a role in short-term domestic building materials market is expected to continue to be good.
    Hot and cold coil: This month the domestic market, a substantial volume up sheet. Recently led the pace of the ensuing rise in steel mills, the market followed by opening the gate ahead, forward transactions and other electronic trading higher prices to stimulate business confidence generally higher call, especially in order to enhance the price again and again, as well as household appliances, automobile and other industries rigid demand for full, step by step to promote market spot trading prices inflate. It is intended to reach steel information network to monitor the nation's major municipalities, provincial capitals, cities, 1.0mm cold plate an average price of 5971.34 yuan, up 390.44 yuan from the previous month; 2.75mm hot rolled an average price of 4531.3 yuan, up 450 yuan from the previous month. Specific point of view, East China Shanghai market rally continued, successive pairs of Baosteel prices for the month rose 3,4 to promote the electronic trading higher at the same time, further enhance the market transaction prices rose. Of the current sand 5.5mm hot rolled steel 4290 yuan, up 450 yuan, Angang 1.0mm cold plate 6150 yuan, up 370 yuan. North, South and west and other places in Wuhan, saddle of this, the river of steel manufacturers, driven by price increases, merchants offer again soared. Now Beijing 5.5mm hot rolled 4350 yuan, up 540 yuan, 1.0mm cold plate 6300 yuan, up 350 yuan. Chengdu, Chongqing 5.5mm hot-rolled at 4480 yuan, up 380-400 yuan. Wuhan, Changsha 5.5mm hot-rolled at 4320-4330 yuan, up 400-450 yuan, 1.0mm cold plate is 5850 yuan, 6050 yuan, up 300-400 yuan. Overall, the impacts on the latter part of the market factors: first, according to statistics, in February 2010 crude steel output in 66 countries worldwide 108 million tons, an increase of 24.2%. With the same period last year, in February the world's major steel-producing countries have maintained sustained growth in crude steel production. Second, the recent press briefing, the industry ministry said a letter will increase the degree of elimination of backward production capacity of steel in 2010, 2011, a total elimination of backward iron smelting capacity of about 100 million tons, an arduous task. Thirdly, the National Development and Reform Commission 23, is expected in March consumer price index at the current level will be down slightly in the first quarter consumer price index rose an average of 2% -2.5%, and in a modest increase range. Fourthly, March 24, Baosteel hot-rolled prices rose in April for 200-300 yuan / ton. In Wuhan, Benxi Iron and Steel saddle prices of similar products are mainly under the advance, in order to show consideration for the sensitive period of negotiations on iron ore, Baosteel cold-rolled hot-rolled flat in after-hours announcement is an extension to reach test - wait and see - a reasonable profit-making purpose . Thus the short run, forced by pressure of rising costs, driven up prices of steel that is homeopathic move. Overall, the steel price increases are gradually opening the channel, the domestic plate market, affected by short-term support is expected to continue to the high mobility.
    Plate Market: domestic medium plate market rally this month, again and again. On the whole, the recent focus on cold-hot market, "skyrocketing" strong, driven by the board to be outdone, traders experienced a "day of a rose, five days a rose," a good posture, another terminal and intermediate demand began to recover, to provide lateral support to the current rally. As of the end, it was intended to reach steel information network to monitor the nation's major municipalities, provincial capitals, cities, the average price of 20mm medium plate 4491.4 yuan, up 491 yuan from the previous month. From a market perspective, the Shanghai-Nanjing-Hangzhou, East China and other places up sharply, on the one hand is subject to the relevant panel, led by higher prices of the other hand, many local companies continue to raise prices in the board also formed a strong push. Hangzhou, the board is 20mm & P 4550 yuan, the Shanghai market in the same size plate 4,450 yuan, up 430-550 yuan. North? Central and western regions is even more gratifying gains, business confidence high, reluctant sellers, such acts continue to rise led Quotes? Is Wuhan? Guangzhou market days steel? Shaoguan Steel 20mm medium plate were 4,400 yuan and 4520 yuan, up 400-450 yuan ; Tianjin, Beijing 20mm medium plate market prices are in 4400 yuan, up 550. Chongqing, Chengdu, price 4480 yuan, up 380-420 dollars? End by the end of February, according to British research firm Clarkson on the world's total shipbuilding statistics, according to deadweight terms, China's shipbuilding capacity, the new orders received, hand-held orders accounted for the world market share of 46.1%, 51.9%, 37.6%, compared with a year earlier, shipbuilding capacity increased by 22.2 percentage points, accept orders for the new, hand-held orders increased by 0.8 percentage points and 1.7 percentage points. Is expected to short-term domestic medium plate market will continue to run high.
    Profile Market: Profile of domestic market continued to rise this month. Rapid growth in the iron ore price situation, the recent Liuzhou Iron and Steel, Laiwu Steel, Maanshan Iron and Steel etc. shift the cost of rising steel prices have increased, which directly drive the market price of the higher profile, other downstream users in the "to buy up non - buy down "mentality prompted, the procurement warm gradually increased further up the price of building blocks for the market is expected to short-term or in high-cost support, domestic profile of rising prices there is still inertia impulse. As of the end, it was intended to reach steel information network to monitor the nation's major municipalities, provincial capitals, cities, the average price of 36 # I-BEAM 4313.91 yuan, up 286.52 yuan from the previous month; 25 # channel average price of 4165 yuan, up from the previous month 274.55 yuan.
    We all know, Recently China has always been accompanied by rising steel prices high inventory of environmental and "robust growth" up, so even though the "high inventory" phenomenon exists, but it does not mean denying the market price rising to pray for the good wishes, because in addition to supply and demand in determining prices, there are also costs, such as macro-face playing an extremely important impact.
    The first is cost, iron ore price is 10 consecutive months, all the way up, just do not say a long association mining, ore spot is already more than hundred percent of the gains, including coke, water, electricity and other costs have also increased over the same period a lot Then steel products as their "collection", the price should be a higher return to normal, from the hot-rolled yuan to 5,900 to the highest in recent years, a minimum of 2,800 yuan, and now rebounded to 4300 yuan, then when the up cycle is the beginning of in the short term continue to rise "almost" is not a problem.
    Furthermore, although the recent introduction of a number of economic adjustment policies, but he's not hurt does not itch, the tightening of market liquidity, but the business is still not bad money, so "prices - reluctant sellers - hoard goods" in support of money, the Even if there is a high risk of stocks, traders who still dare to price increases.
    Finally the cost of steel had to shift to profitability, even in the iron ore, a crucial period of negotiations, nor the efficiency of enterprises so important with this backbone, period prices, the electronic disk as well as traders will have a stronger push up the confidence of .
    Quotes to move upwards, but never be a straight line, when the costs are transferred a surplus of steel mills and traders pulled out a reasonable profit margin, then the ones who enjoy sales, loose cash in such acts in order to "stand firm", the market will naturally be for the next a period of up to adjust. Also, if countries could adjust interest rates of heavy handwriting, large-scale monetary tightening, then less money, the market will take inventory surgery, when the hidden dangers of high inventories will also be completely exposed.
    The above analysis is expected in April will be welcomed by the domestic steel city, marched up the pace to continue, and some uncertainty of the presence or the direction of the market will make a difference.