When enters June, the construction steel industries has entered the off-season. Due to the rainy days in East China and South China, the business has come across the blocked shipment, which makes it more sever.
On the costing, due to china has regulative the intermediate frequency furnaces completely which makes the national billet source to be tight. The firm costing affects the construction steel products largely.
On the demand aspect, the off-season becomes more patently. Although the price rised continuously, the downstream’s purchase is limited. From May, the data in CAMELSTEEL shows that the profit narrow between lumber and billet becomes smaller. And the lumber profit is swallowed.
Overall, except the strong support of costing, there are many bad news and hidden troubles. In June, the steel price starts to be high. In July and August, it maybe fall down. But due to the costing and policy environmental stage demand, it will not occur the free-fall down.