Steel price will drop next week

First of all,when it comes to steel price,we have to say futures.Their connection is too close.Take rebar futures for example,price rises 170RMB from 3699RMB on June 4 Monday to 3869RMB,which shows environmetal protection factors have great influence on capital market expectations.The general manager of an steel said before,the strength and range of environmental performace determine steel price in the second half of the year.

Steel Price Chart In China

Secondly,it’s the environmental protection factor.Central environmental protection inspectorate enter separately 10 provinces,focus on major environmental issues and remediation.Resently affected by SCO summit and limited productions in Tangshan,Nanjing and Hebei,the market fluctuates again.

Steel Price Chart In China

Once again,it’s the inventory.According to the statistics from www.zgw.com,the buliding material have 5047.8 thousands tons,about 249 thousands tons lower comparing last week.

In all,next week price will drop a little,not too much.