Many Customers have found China's steel market has been in a disorderly chaotic state since 2016, performing fluctuating steel price. Most our clients often complain to us: "Why are your prices so high?" "Why did your price fall so much?" "Why did your price increase so fast?" Such questions are endless.
I believe that 99% answers you heard are: I don’t know. As for the remaining 1%, You got none.
Indeed, we really do not know. We do not know why 603$/Tgalvanized pipe yesterday rose 15$ today; we do not know why 706$/T pc strand change to 676$/T; we do not know why obviously a good 15-day delivery at the beginning and finally Into 30 days; because the market is too damn messy.
I am not a professional market analyst, nor the executive in charge of the market, I am just a sales, so I can not predict the future of the Chinese steel market, the best I can do is sharing all the information to everybody.
At present, environmental protection can be described as the largest enemy of the steel market. Two weeks ago, the CCTV(government media) reported the problem of industrial waste discharge in North China.
We can see how thrilling the problem is through these pictures. So I think you should be able to understand the decision of Chinese government on pollution control. The above new directly led to strongly environmental protection inspections in North China, 80% of the factories has been cut off for rectification.
The further reflection of environmental protection manifests in two aspects: First, unstable price., the price keeps ups and downs in the past two weeks, just kidding, like in a roller coaster. So most of the factories in China chose to stop offering, and even leave the workers;
Second, the uncertainty of delivery. The direct result of stop-production is unable to determine the delivery period, although some factories are only in secret production at night.
Of course, environmental consolidation is also beneficial in some way. This is process the Chinese steel industry must go through, which the American, Britain, Japan's steel industry have experienced before.On the one hand, you can eliminate a large number of high-pollution and low-quality factories to enhance the quality level of the product market; on the other hand, this is for the future development of China, taking into account the economy and the environment.
Wish China will be Stronger and Better!