Steel Plate Market Supply Pressure Increased

Steel plate market starts to show improvement, there are types of steel plate price appear rebound, for example, carbon steel plate, API steel plate and other types steel plate. Domestic steel PMI (Purchase Management Index) index rose by 2.3% to 49.0 % from January. It has risen for three consecutive months to the highest point since May 2014.

Steel plate manufacturer reproduction speed up.

According to analyst, the steel plate market demand changes in new order and cost changes in purchase price index get significantly better, such as carbon steel plate. It showed positive factors of steel plate market gathering. The index showed that the reproduction of steel plate manufacture was accelerating. In February, the steel industry production index continuously rose three times to 49.5%, 3.9% higher than last month. The purchasing activities related to production appeared obvious expansion trend. Purchasing volume index increased 5.5% to 50.4% in the month. It returned back to the line more than 50% after 15 months, reached the top point since November 2014. The import index of raw material was 52.6%, up 0.9% from last month. The raw material storage index rose to 51.1%, the highest point since February 2015.

From the actual situation of steel plate production, the loss of steel plate manufacture had been reduced recently, but most of steel plate manufacturer still in loss status. Industry funds remained tight. In addition, the current material market keep strong pattern.

The steel market cost support enhanced.

At present, the cost support of steel plate market clearly enhanced. In February, the steel plate purchase price index continued to rebound, and sharp rose 11.1% to 49.9%, reached the top price since January. Imported ore and steel billet price had strong growth after the Spring Festival , and imported ore price reached $51.2 per ton. It hit a new high of nearly four months on February 20.

The steel products demand will be the key for final trend of steel plate market

According to the related index report, the current steel plate market was under effect of “two low”, the low yield and low storage, and support increased at the policy level, it had formed a strong vibration pattern in short time. For the latter steel plate market, the steel products demand will be the key to determine the final trend of steel market. The market supply pressure was gradually highlighted.