The following brief China Steel Market Situation Analysis was wrote by us on 12th, January, 2017 at that time we predicted that China Steel have no reason to keep strong increase, and finally our predictions shows we are right in market trend analysis.
Dated 12th, January, 2017. Sinowell Metal Remarks: China domestic price steel market is keeping a little bit of slightly re-increases again, about $10 per MT. We think it is Mr. Trumps big incentives for the USA infrastructure updating projects plan. due to this, we really can not find any factor to support world and China steel market upwards. China big pollution around Beijing really cut off a lot of China mill production lines to protect the environment for winter. This is also the factor to maintain price stable but non much strength to make price up and up. So, we still insist of our previous view that China steel price should have return 20% for the highest point of 2016. As China really finish the big infrastructure and housing construction circure. And China real estate is facing very hard time to keep price up and stable and some of main China city house price starting to decreased. And also China’s RMB currency rates is facing big pressure from USD dollar strong again that squeeze China RMB devalued trends from 1USD=6.2RMB at the beginning of 2016, and now it is 1USD=6.95, and we still insist of 1USD=7.5-7.8RMB is the bottom for the currency rates.
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