Some experienced operators and industry insiders think that galvanized the mall market will not have much improvement, offer up lack of power, or will continue to be a period of consolidation, the market is still difficult to disconnect the galvanized pipe, still can not get rid of market uncertainty, the main reason in view of the following aspects:
One is to enter the hot galvanized pipe to the cold season, the lack of support price rise. In July is the traditional cold season hot galvanized pipe mall, like Southern Hebei, central Shanxi, Shandong, Henan and other places have been in high temperature, high temperature shock, has great impact on the construction of construction projects, construction progress slowed down or even suspend construction, so the need forgalvanized pipe is also significantly cut, especially steel wire, etc., screwed steel construction, need togradually shrink. The same is true of other work, home appliance operation since 5 months late is the cold season of traditional production, cars and household appliances production in April year-on-year data werefurther decline, and need to continue to adhere to the high added possibility has little strength weakened, is obviously a big unfavorable factors of the steel city in July.
The two is excess supply, oversupply format, will rise July steel market price restraint. Although 6 months late,some steel mills to repair, control production capacity, to cut output, but the need is far greater than the supply of steel. Expected in July into the mall is expected to increase cost of hot galvanized steel, which is selected in July largely tube prices one of the market will not appear the reason.