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In the first three quarters of 2012, falling steel prices led to a loss of confidence among traders and even prompted some to abandon the long-standing practice of winter stockpiling. However, a recent industry forecast from Lange Steel suggests that steel prices could rise by several hundred yuan per ton in 2013, potentially reaching 4,000 yuan per ton. This is seen as one of the most optimistic predictions for the future of the steel market. With recent price increases, many traders who had previously given up on winter storage are now showing renewed interest.
Every year, at the end of the year, steel traders closely watch the final push of the current year and look ahead to the next. According to Han Weidong, a senior expert from the Lange Steel Information Research Center, steel prices are expected to rise in the first half of 2013, with an increase of around 300 yuan per ton, pushing prices above 4,000 yuan.
Li Wenjie, general manager of Shougang Xinhualian Electronics Co., Ltd., is even more optimistic, predicting that steel prices in April and May 2013 could reach between 4,200 and 4,300 yuan per ton. The growing optimism has given traders who were once confused a sense of relief ahead of the Spring Festival.
From November to March, the construction steel market typically enters its off-season. Cold weather in northern regions reduces construction activity and steel sales, prompting traders to buy low and wait for a rebound after spring. Previously, many traders were worried about holding inventory due to fears of continued market weakness. However, near the end of the year, favorable policies for the steel industry have contributed to a recovery in prices.
Yang Jianlong, vice minister of the Development Research Center under the Ministry of Industry, noted that in 2013, with China’s steady economic growth, investments in real estate, automobiles, infrastructure, and electricity are expected to rise. Export performance is also likely to improve, with new orders and purchase volumes increasing, signaling that companies have largely completed their inventory reduction efforts. As a result, the iron and steel industry appears to be stabilizing and is expected to recover gradually in 2013.
Seeing the steel sector emerge from a difficult period, traders are no longer willing to reduce inventory and miss out on opportunities. A senior trader from Linyi Wanshun Steel Co., Ltd., a secondary steel dealer, said that despite past concerns, they have resumed buying as usual. Recently, there has been increased demand for steel, leading to a sharp rise in inventory levels—up by approximately 30% compared to the first half of the year. Meanwhile, more traders are stepping up purchases, further supporting steel prices.
Wang Dejin, general manager of Kingdee, stated in an interview: “I believe the steel market will see a rise next spring. Capable traders should not only stockpile during winter but also try to accumulate as much as possible.†Wang also mentioned that due to banks classifying steel trade as high-risk, tighter lending has created financial challenges for many traders. Analysts warn that as the weather worsens, the pressure on the market may shift, potentially halting the decline in steel stocks and putting steel prices under renewed pressure. Therefore, traders and winter stockers need to remain cautious.
*Material:BK7 or other optical glasses
*Diameter:1mm - 40mm Â
*Dimension Tolerance:+/-0.005mmÂ
*Surface Quality:40-20Â
*Sphericity:0.005mm
*Coating:optional