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Continuous cloudy futures volatility affecting the steel price drop

Jul 04, 2016

Latest precision steel production statistics: production is still at historically high levels. According to CISA statistics, key enterprises produced 1.6171 million tons of crude steel a day in mid-April, fell 2.54%; national forecasts crude steel 2.0052 million tons per day, fell to 1.26%. In early April, the national daily mean production of crude steel reached record levels, while crude steel in mid-average daily production has fallen, but remain at historically high levels. Terminal purchase: cautious hand-to-mouth buying market difficult. According to statistics, recently in Shanghai Terminal purchase volume continued to fall to 9.69% per cent, demand is still not set up signs before. And judging from the April data, new Terminal purchases a decline in lunar new year February 4.97% March, demand season characteristics are also not reflected. Can be seen on the current needs, end users generally low inventory or ad-buy, fast forward fast. In addition, because of the uncertainty, the lack of spread space, speculative demand is a comprehensive retreat in the middle of this year, Terminal caution in demand coupled with the absence of demand, this season caused the market sluggish shipments difficult. According to statistics, under the influence of high output, shipped flat and Futures volatility, weakening in the market by a strong, continuous overcast fall in steel prices.