The expectation for steel storage is not positive this winter
2013-11-22 16:43:48   

 In steel market, there’s a period usually called winter storage. It means, from November till February of next year, as the frozen weather is not fit for outdoor construction, the demand for steel products declines to the lowest. As after the Spring Festival, the expectation for steel consumption is positive; dealers usually store steel products at the end of the year, making the steel price increase when the demand is negative.
There are three reasons for this year’s expectation.
First, steel dealers do not have motivation for the winter storage this year. In recent years, steel market after the Spring Festival did not booming, making the loss of many storages, so dealers are no willing to take rise this year.
Second, capital is also a limit for the winter storage. Out of the consideration of environment, government requested the limitation for the loan to steel market.
So the steel dealers hardly have extra money to store.
Third, the expectation for the demand of steel products is not positive next spring. From the new policy of The Third Plenary Session of the eighteen, there’s no detailed content for reform, so the expectation for steel market is also not positive, so dealers do not have desire to prepare for the winter storage.
As there is no reform policy in the Third Plenary Session of the eighteen, and government emphasizes environment management this year, the expectation for the demand of steel products is not strong next spring, so the possibility for steel storage is not large this winter.