the control of steel pipe price

The financial attribute of steel price increases continuously

Since the supply-side structural reform, the iron and steel industry has become more closely integrated with future and present, and the function of futures price has played a significant role. The market expectation can be fully reflected in the disk, and the impact of expectation on the cold rolled steel pipe price is increasingly deepening. In recent years, the volatility and trend of steel price are good, which has attracted a lot of speculative funds to enter this market. Meanwhile, steel futures provide a risk management tool for the market, and a large amount of financial capital is deeply involved in steel futures and spot trade. The complex domestic and foreign macro environment and highly sensitive market atmosphere are the fundamental reasons for the rapid price fluctuation, which brings some challenges to the traditional steel trade, statistical arbitrage and unilateral futures trading.

Pay attention to the impact of subsequent financial expenditure on steel prices

It is precisely because of the continuous enhancement of the financial attribute of steel price that the countercyclical regulation and interest rate of policies have an impact on major assets. Monetary and fiscal policy will respond. Monetary policy adjustment is small, the overall framework or the amount of neutral policy + positive structure, change the larger may be a fiscal policy. This means that in the second half of the year, the policy focus on hot rolled steel pipe will shift from structural to aggregate -- to improve the overall effectiveness. From the government's financing situation, the net financing of government debt in the first half of this year has not met expectations. In addition, to promote the end of the year and early next year to form a physical workload for fiscal expenditure to make a cushion. Therefore, we do not need to be too pessimistic about the economy in the second half of the year, the subsequent fiscal support will drive the credit cycle, may see more than expected social financial data, improve the prosperity of all industries, and will boost the demand for pre galvanized steel pipe.

The fundamental support is still strong

Under the guidance of domestic policies, the recent trend of steel is significantly stronger than iron ore, non-ferrous metals and energy chemical plate varieties. In terms of output, although the crude steel output of all provinces except Hebei has increased significantly this year, the accumulation of inventories and the persistence of prices reflect the market prosperity and the real demand situation of square steel pipe are relatively good. Steel price cost support is strong, follow the probability of falling ore price is relatively small. For the recent rapid correction of steel prices, we prefer to believe that this is caused by the stock market correction, as the market stabilizes, steel prices are expected to stop falling and rise.