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Building steel market needs to avoid risks facing slack season

June 8, 2017No CommentsCAMELSTEEL

It has been two and a half months since the government conducted strictest control about building steel. Impacted by regulation and control coupled with hot temperature in summer, real estate and various building steel industries. Such as color coated steel coil, galvanized steel sheet and corrugated roofing sheet have entered into consumption slack season.

The main reason lies in demand slack season which enlarges trading difficulties. Although traders hold inventory low, goods gradually arrive in steel plants. Thus the supply and demand contradiction aggravates.
Negative factors:
1. Support from spot screw market is weak.
2. Comprehensive steel plants reduce hot rolling production. The building-use steel production may improve.
3. Steel plants enjoy high profits and high operation rate.
4. Wheat faces slack season under hot temperature.
5. Plants are cautious about purchasing.
6. Downstream processing plants consider environmental protection element.
Positive factors:
1. Final inspection to strip billet.
2. Steel enterprises intent to control production.
3. Inventory increment of market traders is not obvious.
Now the market is mixed with both negative and positive factors. According to above analysis, CAMELSTEEL thinks that positive factor works more effective. Therefore, traders are suggested to lower inventory and surrender part of the profits.

 

Building Steel is used for making construction materials in a variety of shapes. Building steel shapes, sizes, chemical composition, mechanical properties such as strengths, storage practices, etc., are regulated by standards in most industrialized countries.

CAMELSTEEL Main product:

A. prepainted galvanized steel coil (PPGI).
B. prepainted gavalume steel coil (PPGL).
C. galvanized and galvalume/aluzinc steel coil (GI & GL).
D. prepainted galvanized steel plate and roofing tiles.

Previous post Building steel market in 2017 Next post The storage method of colored corrugated steel roofing sheet

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