May 14,, the data suggest that, last week (May 7-May 11,), domestic steel price full speed up to the downside. After the last half after fall Yin, after more aggravate the contradiction between supply and demand, the businessman mentality also tend to worse last week, causing acceleration down the situation.
As of May 11,, the domestic main market of quality level 2 rebar 25 mm average price is in 4289 yuan/ton, a former Friday fell 74 yuan/ton; 6.5 mm contour average price is in 4344 yuan/ton, a former Friday fell 76 yuan/ton. Shanghai regional steel prices fell back, cut the price of a single week 50 yuan/tons, Beijing area in a single week cut the price of 80 yuan/tons.
The central bank announced on May 18, from within, cut deposit financial institutions RMB deposit reserve rate 0.5%, will release a about 400 billion yuan capital. But the analysis that because of the steel market dominant, the contradiction between supply and demand, and raw material prices still have larger fill the late fall pressure, the drop of good endorsement must or limited.
Last week, baosteel shares issued in June plank price policy, mainstream product continue 4, may choose plates trends continue, the second quarter overall situation more cautious. Hebei iron mid-may guided prices despite no adjustment, but may on the clearing price will face a slashing. The country at present steel price and the market price hangs upside down exists generally, steel mills face further price cut late pressure.
Steel price in further down last week, the performance of the futures market that is obvious. Last Friday a trading day, rebar in five main contract even Yin, from 4256 yuan/ton fell to 4150 yuan, tons of price falls to 100 yuan of above. And from action look, now at a fall in the channel.
The spot market, last week, the domestic steel market prices continue to maintain momentum in the fall, and most of the region, most variety price fell by, speed begins to pick up. Last week for important data release time, April CPI, PPI data, April steel export data, steel production data, in April before the fixed assets investment data, real estate investment data, value added of industry data and baosteel June main products price policy data are introduced in this week, the data of the final results, for steel market movements, it basically no case was good, market psychology continue to deteriorate, steel futures and spot price drop in all increase.
Price declines in Shanghai last week procured intensified. As of May 11,, steel index reported in 4170 yuan/ton, week, prices fell 50 yuan/ton; Over the same period, the Shanghai quality level 2 rebar representative specifications reported in 4070 yuan/ton, week, falling 70 yuan/ton; And Shanghai quality level 3 rebar offer reported in 4230 yuan/ton, a week cut 50 yuan/ton.
This steel price from mid-april dip so far, thread has fallen more than one hundred yuan per ton, and set screw and the falls of contour is as high as 200 yuan/ton. And the early fall Yin, after steel price have accelerated dip below last week of power.
Analysis thinks, at present the market is still in the fall of channel, and with low cost, steel mill for fall, companies continue to throw goods to cash, steel price is still further downside risk.
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