Can the continuous rise of the hottest Shagang sup

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Can the rising price of Shagang support the rising price of steel all the way

today, Shagang raised the price of building materials in the first ten days of August by yuan/ton, and the outgoing price of 20mm grade III deformed steel increased by 100 to 4350 yuan/ton, which was in line with the spot market in Nanjing, and the price difference was basically reasonable. Shagang has raised the ex factory price of deformed steel bars for 20 consecutive days, with a cumulative increase of 200 yuan/ton

due to the further improvement of supply and demand fundamentals in July, the steel price shock strengthened, and Shagang's price adjustment followed the market more. At the same time, last week, I tracked the inventory of 137 building materials steel mills to 4.252 million tons, which continued to decline for four weeks, hitting a new low this year, and also gave steel mills the bottom price rise, which was internationally encouraging. Whether Shagang's price adjustment can continue to support the rise of steel prices, let's listen to what analysts say -

analyst Shen Yibing said that Shagang has two invention patents in the United States; The price increase of 16 Steel Deformed Bars authorized for 20 consecutive days also triggered a heated discussion of 100 yuan/ton, establishing the current market preference pattern

in July, the construction industry business activity index was still in the high boom range of 59.5%. Although the property market regulation continued to increase, the housing construction industry was still booming, and the demand for construction steel in July did not fall but rose. At the same time, the supply side of the steel industry contracted because Tangshan steel plant began to limit production in late July

in addition, the marginal relaxation of monetary policy and the central government will strengthen the efforts to make up for weaknesses in the infrastructure sector will also boost market sentiment. In the short term, due to the rising cost of taking goods, the preference of supply and demand fundamentals and macro policies, steel prices may still be strong and volatile. However, considering that the downstream funds are still tight and the demand is unstable in August, the room for steel price rise may also be limited

Wang Jianhua, chief analyst, said that the main incentive for Shagang to increase the price of building materials since late July was the production restriction measures in Tangshan

in terms of fundamentals, the contraction of supply, the continuous low level of inventory and the slight recovery of demand have led to the current strength of both spot and futures of building materials

according to the order situation of steel mills, there is no pressure on sales. In August this year, the orders of some steel mills that may cause pipeline oscillation or leakage are basically full, and some enterprises even complete the August sales target in mid July

in the macro aspect, although it still faces some external uncertainties, such as the Sino US trade war, the pressure of RMB devaluation, and so on, However, at the meeting of the Political Bureau of the CPC Central Committee yesterday "Maintain the steady and healthy development of the economy, adhere to the implementation of an active fiscal policy and a prudent monetary policy, and improve the foresight, flexibility and effectiveness of the policy. Fiscal policy should play a greater role in expanding domestic demand and structural adjustment. We should control the general gate of money supply and maintain reasonable and sufficient liquidity. We should do a good job in stabilizing employment, finance, foreign trade, foreign investment, investment and expectations." The government's work ideas in the second half of the year were clarified, which provided a good foundation for the stable development of the market, and the early pessimistic expectation of the domestic macroeconomic performance in the second half of the year was alleviated

Wang Jianhua also said that Shagang's price adjustment will support the short-term strong operation of building materials prices. However, it should also be noted that the recent price rise is slightly faster than the fundamental performance, and a more rational and stable trend should be maintained

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