Ductile iron pipe is unrealistic to rely on the bailout policy

2013-11-18


Early economic data released in October hit a new high since March, is expected in the coming months, the CPI will still run high, the control of inflation is still one of the tasks of macro regulation and control, and therefore will still tight market liquidity. Coupled with the end of the year approaching, the country will increase the target for the completion of investment, the central bank has taken a steady tight policy will continue, so investors have to face financial pressure is also a high probability event.
 
So, ductile iron pipe is unrealistic to rely on the bailout policy, investors still perilous, the parties should develop response plans, to avoid the danger in a crisis, looking machine, remain cautious state of affairs, and actively carry out self-help enterprises, in order to secure for the winter.
Average daily production of crude steel in October three mid-level maintained a downward trend. Average daily production of crude steel in October compared with September down 3.73 percent, the first time since February this year, below the 2.1 million tons. October some steel mills into shutdowns, crude steel production fell to become one of the reasons. Meanwhile, in recent months, ductile cast iron pipe industry faces environmental governance, eliminate backward production capacity, and many other policy pressures, at present these pressures have gradually reflected in the decline in yields on. Given the growing emphasis on decision-making control of excess capacity, the release of crude steel production during the year is still expected to remain low, ductile iron pipe supply pressure has weakened, so the supply side ductile iron pipe prices will provide a degree of support.
The annual November to February period, most of the country especially in the northern region will be affected by rain, snow, freezing climate, outdoor projects basically stagnant, demand for ductile iron pipe fell to a year low. Out of the market after the Spring Festival "good start" market expectations, businesses will be low at the end of time periods stockpile to be up. Thus, resulting in ductile iron pipe prices in the winter off-season demand appears Adversity rally, so-called "winter storage" market.