Problems televisionviewing segment of China reached its peak
Speculators invested in the futures relating to iron ore and steel. By doing this, they hoped for a jump in prices after a promise by Beijing to invest huge amounts to increase demand within the country.
In China significantly increased the production of steel products plants. Steelmakers were chasing the highest profit in recent years. However, their fear that the long-term increase in world market prices of ferrous metals will end. Strategy of penetration is a threat to the market with rising prices. The price of its steel products used in construction for a few weeks very grown up. They jumped over the bar 2014 for the first time during this period.
However, the increase in prices is caused not by the reinforcement of growth in demand. As the accumulation of steel in the great cities produced a variety of speculative agreements. This became a driving force in the issue of price rise.
In the capital promised to do a lot of investment — billions of dollars — in some aspects. These include construction and projects in the field of infrastructure. This pushed dealers to invest large sums hoping for a significant price increase. Futures was mostly in steel and iron ore products.
However, the President still Shiheng Special Groups from the Chinese province am confident that the market is teetering on the brink of collapse. According to him, the price increase may not last long and is only a matter of time. This comment he gave at the annual meeting Obschekitayskom the Assembly of representatives.
Increased activity and rapidly rising prices break the longstanding efforts of the government. They have long tried to reduce capacity in the steel sector increased. It was aimed at the revitalization of industry and the problem of smog. Directed these actions were substandard products, which include fittings.
Last weekend, the authorities made another important statement. The government has planned to cut another half hundreds of millions of tons of production capacity this year. In the past year has been removed sixty-five thousand tons. In spite of this, a lot of factories that were closed last year, was not injured. At the time of closure of the enterprise was not working and was empty. But the manufacture of products at the active plants grew. The increase amounted to slightly more than one percent. In numerical figure is about eight million tons.