For the volatility of stainless steel prices in recent months, May 12 morning, held in the National Development and Reform Commission in May scheduled regular press conference, deputy director of the political research room, press spokesman Zhao Chen Xin said that from the information to see , The parties concerned that the stainless steel prices, mainly by policy expectations, market speculation and short-term factors to promote the market supply and demand relations did not occur a fundamental change in the situation of stainless steel production capacity has not changed, stainless steel prices difficult to keep fast rise.

However, since late April, steel prices began to callback, the current price has been higher than the April high of 25%, stainless steel stocks began to rise, iron ore coke prices fell. Data show that the stainless steel price index fell to 82.57 after entering May.

With the continued rise in steel prices, is the so-called "under the reward must have courage", the social capital began to flow into the steel to a large area of production, resulting in April daily production than in March significantly higher, and has been close to the same period last year s level. On the other hand, Ren Zhiqiang said, from the previous month inventory data, the total storage of social stainless steel 9.19 million tons, an increase of 1.2%, has been Guaitou upward trend, which is the first time in nearly two months inventory increase. "In accordance with the three stages presented in our previous report, the stage of iron ore compensatory growth, the stage of capacity utilization, the stage of inventory increase, has entered the next stage, the supply and demand pattern has been reversed.

Similarly, there are brokerage analysts pointed out that the main reason for this round of rising is the supply and demand mismatch, and the recent callback is due to the pattern of supply and demand reversal. Societe Generale Securities analyst Ren Zhiqiang that in the beginning of this year, the rise in steel prices in the process, due to bank tightening of loans, resulting in the suspension of steel mills before the lack of funding can not resume production, so that the supply side continued to shrink. While the demand side with the arrival of the spring season, the growing demand, and ultimately lead to a situation in short supply. Stainless steel industry is a cyclical industry, and still in the context of excess capacity, while steel prices are also looking for a new dynamic balance in the ups and downs. Since the end of last year, the price of stainless steel ended for several years continued to fall, entered a big rebound period, the price soared in months. With the accompanying, stainless steel stocks continued downward, iron ore prices rebounded strongly, tons of gross profit improved significantly.