Stainless steel stock still face some problems

As the continuous decline of LME prices in recent years, nickel spot trends on the market is declining, a recent months, the LME nickel prices is starting to get money, is mainly due to the Indonesian restricting the aluminum nickel ore under the background of domestic nickel spot prices are also rising, jinchuan nickel spot is up all the way. But looked from the long-term trend, excess supply, end demand growth is slowing, and industrial chain tight funding problems always exist, stainless steel spot is still difficult to change in a long period of time a weak downward trend. But in the short term, the steady growth expected intense, cost support strength strong trend and factors such as spot trading conditions improve for nickel prices stabilize rebound, rebound and if expectations were stronger, or will stimulate producers and traders to take the initiative to increase inventory.

Macroeconomic situation in the first quarter, and are similar in June and July last year, macro economic downward pressure is obvious, the economic data are of low level in recent years, the HSBC PMI, industrial production, investment in fixed assets and collective weak housing starts. To stabilize the macroeconomic situation, a series of policies and measures in the steady growth, major media also blow warm wind. From turn shantytowns into new housing areas, speed up progress of railway construction and put into operation and integration of the beijing-tianjin-hebei region strategy, the recent Shanghai port, directional quasi reduction, etc, all show steady growth signals. With seasonal demand picks up in steady growth policies, under the dual role of nickel and stainless steel spot stabilizing rebound.

Early 15000 the following nickel prices have breakdown of most enterprises cost of nickel iron production line, most industries in the losses, shutdown, leak phenomenon is relatively common, not production enterprises are also struggled on the edge of survival. With starts declining, nickel iron supply side pressure eased, nickel iron supply side pressure relief, to a certain extent, ease the LME nickel price downward pressure.

The current spot prices for nickel iron is higher, has high nickel iron spot has been pushing 1300 yuan/nickel. As the LME nickel prices rebounded since the beginning of April, steel nickel iron spot price bidding price along the line, stainless steel spot are being higher.

Bullish factors prevail in the short term, short term or rally will continue to have the opportunity, but domestic nickel, after continuous attack on strength obviously deficiencies at present. The reason is that: first, after more than three years after falling trend of the market, has been widely expected in the market at present, namely the stainless steel industry chain is or has been into the winter period, prices rebounded transient behavior. We found that after the rebound in prices, inventory kinetic energy significantly less than in previous years, the market short funds more cautious. Second, stainless steel chain traders lack of money is still serious, even with inventory demand, also do not have financial strength to cooperate.