Analysis of the current steel market rally
Source：YongLiYuan Time：2015-1-17 9:01:46
9 earthquake occurred in Japan on Friday, not only rocked the global financial markets, but also to China's steel speculators found a reason to pull up. Monday after the opening bell, the original has been maintained for up to four weeks downtrend and hot rolled thread futures electronic trading began struggling to pull up. Pre countless losses spot businesses is thinking up eager, until now, the Shanghai area 5.5mm thick volume prices rose Friday around 120 yuan / ton, Beijing rebar prices rose Friday's 100-200 yuan / ton, Tangshan Cape region billet prices are up 90 yuan / ton. Market feedback, stimulate prices traded heavy volume, the key pressure on the stock market to get some relief. I believe that the strong rebound in steel prices this wave is largely affected by the earthquake in Japan. Long fall of market hype reconstruction demand in Japan, long-term and spot echoed each other, which led to the country, "Zhangshengyipian"; In addition, China's "two sessions" end, a variety of policy-oriented basic uncertainty, has been watching the pre-terminal companies began to invest production, effective demand began to release. However, I believe that in the current Japanese aftershocks, rescue work before the end of the case, the demand for reconstruction at least not appear in 2-3 months. Furthermore Japan affected mills for the production of high-end multi-plate-based estimate of the general board of steel and construction market is not affected. At the same time, we should continue to see the current domestic funds face tightening, in open market operations on the 15th, the 1-year central bank bills interest rates up to 3.2% lead deposits, interest rates signal strong. And part of the steel trade expired in mid-March tray under pressure and bargain-hunting mentality loan, there are also risks fall in steel prices. So I believe that the current market need to treat cold contemplation, mills and traders to seize the opportunity to ship, downstream users need to be cautious to cover short positions.