Why the stainless steel stocking in December is faced with cold feedback?

After entering the fourth quarter of each year, it comes to stainless steel market annual winter storage season. Normally, traders will take advantage of cheaper price in winter and prepare more stock, then after Chinese New Year, traders began to sell it in the following year. However, based on the current feedback of 304 market performance, previous winter high stainless steel storage did not show up. The reasons are related to thin margin, bad economic environment, and governmental policy in China mainland.
A weak macroeconomic state and lower demand in market

The first three quarters of 2014, even though the Chinese government has introduced many ways to stimulate investment. However, China's macro-economic growth rate still did not show significant improvement based on real estate investment, consumption, electricity consumption, industrial index.

Most major economic indicators showed a decline trend except for the large -scale industry growth. The real estate investment growth is especially obvious. The downturn of demand on stainless steel in real estate industry brings stainless steel industry a great trauma. Although government has introduced a deregulation policy control on real estate industry, the entire cannot have a immediate increasing due to the entire industry overcapacity. Currently, there are many infrastructure, these projects cannot save the whole stainless steel market in short time.
316L stainless steel sheet, 304 stainless steel sheet, and 201 stainless steel, those most frequently used stainless steel may be most affected.

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