Steel market:

On February 18, the domestic steel market once again ushered in a "good start", Tangshan billet market price reached 4080 yuan, compared with the pre-festival pull up 230 yuan, other varieties also showed a rapid pull up the market, the average compared with the pre-festival pull up about 200 yuan.

After the steel market presents a rapid rise in the reason why, and listen to the author to come slowly?

One is that global monetary excess is underpinning inflation expectations, with commodity markets at the forefront.Inflation expectations will continue to push commodity prices higher as overseas commodity prices rose during the Lunar New Year holiday and as the global economy continued to recover and the effect of monetary easing intensified again last year, the global commodity market has become the main battleground.

Second, financial data in the first month of this year greatly exceeded market expectations and significantly boosted market confidence. In January, new RMB loans reached 3.58 trillion yuan, 225.2 billion yuan more than the same period last year, hitting a record high.The scale of social financing reached 5.17 trillion yuan in January, an increase of 120.7 billion yuan year on year.

Third, "Chinese New Year in place" significantly promoted the growth of the consumer market, which also led to the continued prosperity of the relevant manufacturing industries.Major retail and catering enterprises nationwide achieved sales of about 821 billion yuan during the Spring Festival, up 28.7 percent year on year, according to statistics from the Ministry of Commerce.During the Spring Festival, the number of communications equipment and home appliances in retail enterprises monitored by the Ministry of Commerce increased by 39.0 percent and 29.9 percent, respectively, compared with the same period last year.For the relevant manufacturing enterprises, because of the increase of orders and accelerated the rhythm of production, the urgent need for employment, this year's Spring Festival has become home appliance enterprises "recruiting season".

The fourth is the high cost of raw materials, forming a hard bottom of steel prices.February Platts iron ore index maintained in the 155-165 range of shock, and the price of coke also maintained at the high 2800 yuan, so that the cost of steel prices to support the strength of the significantly enhanced, so that steel prices are easy to rise difficult to fall.

Fifth, the structure of this year's winter inventory changes, also prompted the steel prices are prone to a rapid rise in the market.Because of the price is higher than that of normal first had winter this year 400-500 yuan, the spot trader to active had winter will not high, so that had winter inventory mainly concentrated in the hands of steel mills and the level agents, due to the pricing power and cargo weight is relatively concentrated, making it easier for the post-holiday steel spot appears quickly pull up the market, but in a quick pull up at the same time, the market risk is accumulated, the late market merchants also needs to prevent release of uncertainty brought about by the callback risk.