Analysis of the reason why the price of hot galvanized steel pipe rose sharply. The main factor is that the pre-sale price below the cost of production of the median line. Some companies were forced to cut production losses. Statistics show. The first two months of this year the country’s crude steel production fell 5.7%. Hot dip galvanized steel production fell 2.1%. at the same time. “To buy up not to buy down” the law of the market also makes the rapid decline of the social stock. Significantly lower than the reasonable level. Resulting in supply and demand tend to balance. Not only that. Global iron ore and energy prices, also fell to a median cost line. The high cost of production have been out of the market. Promote smelting raw materials, energy and shipping prices bottoming out. Thus. National hot galvanized steel prices to rise this year. Its main influencing factors and characteristics in terms. Or belong to the price oversold lows after. Instead of hot galvanized steel pipe market full reversal. That is. Pre-galvanized steel prices fall too far. Lower than the median cost line. And ultimately lead to market mechanisms for hot dip galvanized steel supply mandatory suppressed. Thus laying the foundation to rise hot galvanized steel pipe prices.
Generally, the full reversal of the market price of hot-dip galvanized steel. It must be a significant change in supply and demand fundamentals. For example, consumer demand growth. Or steel production (not yield) of a large number of exit. The overall supply and demand tend to balance even tight. Now. Although the authorities have a lot of investment projects approved. The total investment of more than 4 trillion yuan. But not yet fully and promptly started. According to the statistics. This year 1–2 months. National investment in fixed assets (excluding rural households) increased by 10.2%. Growth rate down 3.7 percentage points over the same period last year. Over last year’s fourth quarter, just 0.7 percentage points. At a low level in years. In February this year, before the above-scale industrial added value of an actual increase of 5.4%, this value has dropped to its lowest level in 2009. Year hot dip galvanized steel pipe exports decreased by 1.3%. Hot dip galvanized steel supply. Now we can see only the decrease in production. But the huge production capacity still exists. Capacity just to put on the agenda. You can truly have a lot of uncertainty. Especially in the face of hot dip galvanized steel prices rose and pale. therefore. Hot dip galvanized steel market has not yet fully reverse the condition.