Steel market continues to rise for 6 months

BCC Beijing January 30 News According to the economic voice of the financial morning newspaper, for the real estate market, the new "State eight" after the introduction of steel prices at the beginning of the week, but after a short fall, steel prices regain the rally, even if the Thursday night real estate tax has not changed the strong pattern of steel prices.　　Since July 2010, the steel market continued to rise 6 months can be summed up in the context of supply and demand improvement, cost-driven round of "small bull market" market.　　From the supply point of view, first in July 2010 steel mills lost production, and then September overall development of energy-saving emission reduction, steel production has a serious impact on steel, especially rebar inventory continued to decline, serious oversupply situation has improved. From the perspective of demand, the protection of housing, large-scale investments in railways and power grids have led to a marked improvement in demand for steel; In the context of improved supply and demand, the upstream raw materials, iron ore prices continue to rise, after deducting the sea freight factor, the current iron ore offshore prices than before the financial crisis level, the rising cost of steel mills were forced to　　This, in turn, stimulates traders ' bullish expectations, leading to a continued rise in steel prices during the off-season. Crude oil prices continued to fall this week, the NYSE crude oil MARCH contract price 85 USD/barrel, less than 86 U.S. dollars/barrel, for the second consecutive week down. The global loose supply and demand fundamentals are the most important reason for the short-term difficulty of upward breakthrough in oil prices, with OPEC members still having more than 2 million barrels of spare capacity per day, although demand for crude oil is increasing, but still at a distance from pre-crisis levels.