Flange funds will not change fundamentally

   Due to the decline in raw material costs, the rebound in demand for flanges and the development of environmental protection work, many traders believe that the profitability of steel companies in the second quarter is expected to improve compared with the first quarter.

   The current institutions are cautiously optimistic about short-term funds. The market participants in the Flange pointed out that the current downward pressure on the economy has increased significantly, and the demand for policy support has increased. Financial reforms also need “moderate liquidity” support. The open market expires this week. The funds are reduced. According to the recent efforts of the central bank, the central bank's tolerance for the moderate shift of the interest rate center will increase, and the size of the return will be correspondingly reduced. The loose pattern of the funds will not change fundamentally. There are still many problems in terms of enforcement. The limitation depends on the implementation of national policies. What is the implementation of regional governments? If you can pass the pickpocket and directly take the unsatisfactory sewage in the running steel mill to control the actual output, then it will quickly benefit the steel market supply and demand. However, there are actually many problems to be considered. For example, a large part of the government's tax revenue is collected from steel mills. At the same time, if some steel mills are shut down, there will be problems of reemployment of laid-off workers. Even if the regional government starts to squat at this stage, who knows if it can persist for a long time.