China's steel prices continue to fluctuate sharply

Under the influence of the "bungee jumping" effect, the Chinese steel market experienced a "big up-big down-big up-big down" interval shock, during which the price amplitude exceeded 1,000 yuan/ton, and the prices of some varieties exceeded 1,300 Yuan/ton, the overall market price is basically at the level before May 1st, and some are already below the pre-holiday level. This kind of "extraordinary movement" in the market is similar to the trajectory of fluctuations in 2008, depending on the stability and the discovery of the bottom after the sharp drop in steel prices.

Under the condition that there is no obvious change in the relationship between supply and demand in a short period of time, the ups and downs of the market are not only directly affected by the steel futures price, but also affected by the market mentality. Under the premise that the steel output is continuously reaching a new high, the market appears the worry psychology. Under the interference of the continuous large fluctuations in the early price, the rise of the market price is blocked, The price barrier of 6000 yuan / ton was soon broken down, and the price of some markets suddenly fell below 5500 yuan / ton to 5000 yuan / ton, making the market more and more severe. The market has entered a weak state.

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