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With prices again fell back in July last glimmer of hope bleak ending. In August, the market trends in the end how to, how to operate the business, prices rebounded to defeat and then what is the antecedents and consequences of "premature", along the way the Steel City, what is missing ... worth thinking about.

In fact, as early as the first to rebound in the spiral and hot rolled, already doomed to the rally will not last long. Plate and cold rolled coils is tepid, and even vulnerable downward pattern still continues. The first rise of the stock market, steel, electronic trading and capital markets after the fall, also indicates the improvement of the market can not be accomplished overnight.

From the recent weakness of steel spot market trend also confirms this point. Prices rebounded, but 3 to 5 days, but the rebound is not fully rebound only individual sensitive varieties a slight rebound. On the rebound, nor bottoms rebound. Turnover and prices appear significantly improved, the need that the market although the rebound after experiencing successive downward market mentality is also the desire of a rebound, but apparently supportive factor is not solid, the upward momentum is not so strong . Doomed to a wave of short-term technical rebound, flash in the pan.

Downstream industry downturn, funding constraints, high-volume, high cost, low demand plagued the steel city out there, would like to reverse is also not an easy task. But so much more than creating a market downturn factors. The attendant is a serious lack of confidence. A lack of confidence both in the upstream, downstream, or middlemen exist, resulting in the panic Paohuo, low sales are common occurrences.

And on the steel point of view, although the cut bailout idea, but the real action is far from achieving the effect of the 2008 financial crisis, steel mill operating rates remained at high levels. Substantive improvement of the order to the market, either in place of steel production, or demand for the release in place, the simple dependent countries drop prospective interest rate cut steel market hurt does not itch the macro side policy to rescue the market may be almost zero. Action in the past several States in this regard, the steel city policies favorable response is weakened. Subsidy policy for the automotive, appliance and other downstream industries of view, the results are significantly lower with market expectations. Also around the real estate bailout, often under pressure and setback of these factors are destined to the steel city of short-term demand is difficult to markedly improved.

Regardless of the lack of points, the market rebound is not particularly smooth. Therefore, for the steel trade, or the opportunity to shipments for the best.