In the real estate investment on the expected steel demand pull, GF Securities Analysts judge rebound in steel prices in October will usher in.
Last week, domestic steel prices index for 133.7, than the previous week fell 0.5%, decline slowed down significantly, the market turbulence began to appear. From the sub species, last week long products price index for the week of decline 0.2%, flat products price index week decline is only 0.7%, 6 weeks in a row down the slowdown. From the price of the same period last year relations, the current long products price index year-on-year drop of 23.7%, while the sheet of the year-on-year drop of 25.6%.
At the same time, raw material prices also appeared signs of stabilising. Since early 8 began to steel prices began to fall into the channel, the cumulative decline of nearly 20%, steel margin narrowed sharply, but still lack the impetus to cut steel, analysts believe that the support in high yield under the procurement of raw materials, although somewhat cautious, but the rigid demand still exists.
On the weekend, steel social total inventory 11127000 tons, 1.61% less than the previous week, last week the social inventory than the decline was the first since nearly two months, this also means that the staged second years to stock. From the sub species, screw steel, wire rod, plate stock reduction over central and hot-rolled, cold-rolled products, inventory is a small increase in november.
Analysts believe that the two will be staged to the stock oriented steel prices in the next period of time to stabilize prices. In the downstream demand for rigid support, short-term wait-and-see attitude will gradually in the past, with the realization of the end of 9 before the stock and distribution business to further suppress the steel factory price objective, analysts maintain the steel prices are expected before the end of 9 and October rebound point of view.