As the Central Bank cut interest rates last week to benefit the digestive tract, steel market this week is once again returning to fundamentals. Due to market sold no improved, terminal needs in off-season comes Zhiji more is light, market trade commercial reflect this week are to vulnerable wait-and-see mainly, most market is stability in the has fell of price adjustment shipments, despite decline wishes not is high, but consider to new a round of mills ordering playing paragraph and June late of half period loan repayment pressure, part businesses is "was forced to" decline back paragraph.
The short term, the current economic stimulus conduction to the downstream demand still needs time, market pessimism have not eased, boosting effect on steel sales limited inventory decline slow this week and the overall inventory and are high in comparison with the same period last year, with rebar 23.2% higher than the same period last year (July 8), steel trade still has a larger library back pressure.
Domestic steel prices over the previous week to 0.2%. Angle steel, such as 5#, 1mm, 6.5mm high speed wire rod cold rolling plain sheet prices, 0.5%, and 0.3%. Weaker downstream demand, iron and steel enterprises cut the factory quotes, traders reduce the purchase, driving eight weeks even falling steel prices, dropped 2.2%.
Since May, some steel mills to arrange repair, drop in steel production. According to CISA predicts that national estimates in late May yield 1.9596 million tons of crude steel a day, than in mid-May to 3.9%. In addition, the national infrastructure construction, steel demand will pick up. May national railway completes investment in capital construction of 33.77 billion yuan, than the April increase. Expected slowing late-fall in steel prices.