What brought the past month the current month in the global steel market?
On the global steel market Feb easily without exaggeration be called a time of good expectations. Thus, in most cases, they do have tangible impact on the prices of the steel products. Recall that the first was seen a decline in the value and then a sharp leap upward. The increase in prices, among other things, it is not quite uniform, and that changed little tradition orientation course of trade.
Invariably, the focus has hit China, where in February we celebrated the New Year. In ordinary cases the Chinese new year started the «big season» at the local steel market. This time the celebration was at the end of January, which means a big jump in the use of products at the end of the holidays did not happen. But it is absolutely not in any way prevent the buyers from China actively start to buy the car. It is also worth noting, the size of the visible demand remained rather high until the end of the period.
In General, all this history of China looked, to put it mildly, a bit unreal. Sales volume of steel products and materials for metallurgy has grown rapidly. But consumers don’t used the products, but only increased the reserves. The slightest notation of changing the situation are not observed.
Due to the fact that steel products increased in price in China, there have been changes of the cost in other countries. However, in February a leading position in growth rate still left China. The competitiveness of Chinese products in this regard have dropped significantly.
Due to the decrease in the average total mass export from China to global market there is a place for other vendors. Among them, no doubt, there are companies from Russia. In February, they pretty well made up for by export orders and a contraction in domestic demand in the country.
Domestic rebar prices in Turkey increased by 45−50 dollars per month. This, of course, was not accompanied by a strong increase in demand item. The price increase at most was a personal initiative of producers. However, at the end of the month a certain number of them began to give way.
In March, when springtime comes use rental according to the plans, promises to increase. After that the situation becomes clearer whether the seasonal rise at this time to be very active. Or he can’t explain the spike in the last month.