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WebSite: http://Long products market: trends and prospects.
Site Description:
What trends are emerging market long products, what factors influence the formation of current trends? How to behave players in this market?
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What trends are emerging market long products, what factors influence the formation of current trends? How to behave players in this market?
The answer to this question is quite simple. Decreasing trend created by several factors: the autumnal decline in business activity, lack of market analysis by some of its members and, of course, associated with this incompetence. Judge for yourself, in September, the amount received in our company applications for the metal was more than 26 thousand tons, and we are not able to meet this demand. Our colleagues from other companies also could not satisfy the market. Demand far exceeded the possible sentence. Warehouses devastated.
How did the builders have solved this problem? Imports? After construction season is not yet complete. They are waiting for the seasonal drop in prices?
Construction companies have substantially reduced the levels of their purchases in October. Imported fittings from Ukraine and Belarus began to receive more, but the prices are too high enough, and meet the demand of builders, it is not fully able. If we talk about seasonal changes, up to a seasonal decline another month or two. A situation arose in October - is not waiting for the recession. This is perfectly normal natural and objective pause, which is repeated from year to year. Is linked, including, and with the preparation of enterprises for the winter, and with the end of the calendar and fiscal year and the timing of budget financing. And it is not in effect on the assets! Hidden demand, lack of knowledge of the market, the fear of expensive goods in the warehouse, negative expectations - all this makes the small traders to dump prices. Customers are immediately.
It is the expectation of lower prices justified?
Extraordinary. Allegations of price increases for raw materials sound with enviable constancy, but the important thing is that after these statements actually more expensive raw materials, examples of this situation has shown this past summer. The result - a paradox: we are waiting for lower prices for final product, knowing that to increase prices for raw materials.
Everyone knows the next change of tariff rates, and in some places and in general the tariff policy of natural monopolies. Is it in anticipation of these events can play for a fall?
Of course, in the amount of prices for metal products in the summer of 2006 attended the foam rush. But who will answer, what is its level? The answer we get in any case, but a little later.
What is your outlook for the market? How will behave in prices, producers and consumers in the near future, as the change in the ratio of supply and demand?
In my view an unsecured demand for some types of steel products will be present in our region for at least another 2 years until he will be commissioned in Russia's new power, which is so much talk. But, given the uncertainty with the provision of land for new construction, it is impossible to guess even in the short term. If, however, look to the future, I would have called his colleagues together to work out some measures that would lead to a certain predictability in our business in such a volatile market, how is the market of metal.
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