Main factors influencing the futures price of 304 stainless steel.

What are the main factors influencing the futures price of 304 stainless steel? Tend to view data from tables on the balance of supply and demand reasons, but we have long observed, as the books are always balance, balance between supply and demand is always balanced, but did exist in balanced representation of different characteristics, namely the balance of stability.

Equilibrium stability refers to small changes in supply and demand effects on 304 stainless steel prices, supply and demand price elasticity of 304 stainless steel plate. However, the price elasticity of 304 stainless steel sheet cannot explain price anomalies in some years because is based on supply and demand price elasticity of 304 stainless steel pipe under the assumption of linear description of stainless steel prices, but in an extreme year, stainless steel prices with changes in supply and demand is not linear, but exponential.

We found that main factors influencing the futures price of 304 stainless steel tube  is a potential surplus of goods supply and market ratio of consumption in the current period. For agricultural products, and this ratio is inventory consumption ratio, the ratio of inventories to consumption in the current period in the current period. Due to the seasonal crop cultivation cannot change, current inventory of agricultural products often have absolutely rigid.

However, for industrial products, start refers to the short term surplus capacity and the ratio of consumption in the current period. As most of the characteristics of long-period industrial capacity growth, and taking into account the crop growers of dispersion and relative concentration of industrial producers, once the industrial supply tensions, triggered by the industrial future bull market cycle is longer than agricultural futures bull market cycle.