Analysis of the reasons for the fluctuation of steel sheet pile Market

Steel sheet pile with a steel lock in recent years, with its high strength, good water resistance, simple construction, can shorten the construction period, reduce using soil volume and concrete and disaster rescue timeliness strong, widely used in wharf, dike and retaining wall, dock, interception, cofferdam and so on in. In recent years, with the rapid development of China's economy, steel sheet pile has been applied to various engineering projects because of its unique characteristics, such as high strength, light weight, good waterstop, durability, high construction efficiency and less land occupation.

With the wide application of sheet pile manufacturers, the market of steel sheet pile should be a good prospect. But since last half of last year, the price of steel sheet pile has been greatly reduced. There are three main reasons.

The first is the increase of steel stock and the dive of steel price. This can be said to be the direct cause, and the supply and demand cause the surplus of products.

With the decline of iron ore, recent domestic steel prices have shown a sharp drop in panic, market confidence fell into a low. Under the big drop in the domestic steel market spot price, most steel mills cut down the new phase of the factory price.  Especially since mid October, Baosteel, Wuhan steel, Anshan Iron and steel, Hebei iron and steel and other major steel mills to cut Shagang steel prices, making the already troubled steel market a jittery.

The second reason is that the global economic prospects are poor, domestic policy tightening and steel regulation.

Due to concerns about the U.S. sovereign debt growth can not be sustained, the European sovereign debt crisis fears intensified, Chinese in response to inflation tightening of bank credit, the industry generally believe that the bleak outlook of the global economy, which will cause a greater negative impact on global steel demand, so that when the steel producers had to deal with the price. At present, China's economic growth has dropped for three consecutive quarters, and the growth of manufacturing industry is slowing down. By the weakening of domestic demand and tightening policy, the steel market will still exceed supply. At the same time, the economic growth of Europe and the United States and other developed economies, the impact of economic growth, the difficulty of steel exports will be further increased, the future of steel prices will face further downward pressure.