Prediction of Steel price in 2017

The main factor of affecting price of steel in the market is supply and demand, capital demand is still a major factor affecting price in the market.

Next year the demand for steel from real estate will not decline, with the policy “the Silk Road Economic Belt and the 21st-Century Maritime Silk Road”, the price of steel will continue to rise. And the railway infrastructure projects will support the price to rise too.

In Dec. 2016, steel enterprises’ profit will increase further. The speculation in short-term market is the macro-regulation of government’s policy. After the Spring Festival, steel price will rise, after all, in the traditional demand season, the production capacity of crude steel from medium-frequency furnace steel mill is about 1.1 million -1.2 million tons, large volume. But when nearly finish the task to reduce production capacity, high-pressure policy close medium-frequency furnaces, which will increase the depth and speed of reducing production capacity, much higher than market expectations, and inventory is still low, and next year the task is heavy to reduce production capacity. Production capacity reduction will certainly affect the yield, less yield will make the price rise, before due to the policy of protecting environment has affected the production this winter, which reduced the inventory. With inventory reduction, price will rise.