Chinese metal rental began to get cheaper again

After a rapid rise in prices at the beginning of this week, metal products began to be cheaper in China. A detailed analysis of the current situation opens up some obvious realities that were silent during the rising market trend.

The enthusiastic expectation of consumption growth prompted China's metallurgical plants to increase the production of metal rolling steel, thereby creating an excess supply and increasing the commodity residues.

During the inventory of reserves, after the celebration of the lunar New Year, 1 million 618 thousand 700 tons of steel workpiece was detected in Tingshan. Throughout the country, reserves of the main five types of metal rolling (reinforcement, rollery, sheet steel, hot -rolled and cold rolons) reached 18 million tons, which is almost 2 million tons more than a week before the holidays.

As a result, as SteelPrices-china.com reports, the Chinese steel price index has decreased today by 15 points and amounted to 6584 points. At the same time, the greatest fall demonstrated the sheet metal, having lost 17 points.

Nevertheless, in China they continue to expect the growth of applications for metal products from the construction sector and on manufacturing containers . Even despite today's fiasco, manufacturers of metal rolling in China say that this week has become a good omen that the country's economy is gaining momentum and begins to grow at full force in the spring. Confidence in this prompted the leading metallurgical companies to announce the increase in selling prices for metal rolling in March, which today seems little reasonable.