As the saying goes, "a good beginning is half of success", implying that the beginning of good will for subsequent development solid foundation and bring constantly incentive and confidence. Throughout 2012 endorsement of, at the beginning of the year to demand from is not running, to slow release in March, now had gone by may, an option but walk 2 three steps back, the whole only backwards not forward. The influence factor is too much, from domestic and international economic environment to industry needs a series of links all have involved, the last show before everybody results is finished product unbalanced supply and demand of steel, steel industry excess capacity serious, this indirect effects of scrap steel market.
Finished product demand by not free, influence prices decline, together with the financing side nervous, steel mill control raw materials procurement costs will strongly, the small factory flexible operation careful purchasing, the result that the four months since the start of the late is not yet over depreciation agitation. Universal cut purchase price of steel mill, prices steady months leading steel from east China whom last Friday adjustment tax points to 11.5% depreciation and 50, after a few days and two times the price cut, accumulative total fell 150, sand boss the refiners again confirm the information at present scrap steel market supply and demand, increase the other steel scrap control the confidence of the price. Steel mills continue to round the purchasing price cut and round, with many a little makes a mickle power of slow slow kill market confidence.
Macroeconomic face to see, released on Friday from April macro economic data to see, CPI rose 3.4% year-on-year, a drop of 0.2% month-on-month, promoting economic growth three big head of consumption, investment and exports, synchronous reduction speed, inside and outside demand and slow down, more economic situation slump. And the central bank today started to drop the deposit reserve rate 0.5%, make the financing side to relax, to the market confidence and support of certain, but like does not bring substantial boost. And later for the improvement of the market also rely on and if you can come on stage more practical good policy and policy of the sustainable.
Industry perspective, according to the steel association statistics April, the national average in late, crude steel production for 203, 200 and 2.03 million tons, and the latest data early may disclose the average daily production 2.0453 million tons of crude steel, continue to set a record high, in the short term the contradiction between supply and demand of the steel market still can not effectively relieve. So far, is not only the steel industry excess capacity, the whole industry chain is apparent, the contradiction between supply and demand, no doubt, and a weak market by former scrap.
The current market is still in the overall decline scrap channel, and have not seen bottom. Manufacturers to strictly control the scrap steel purchase price, the small factory demand and strict inspection acquisition; The market traders clinch a deal between the downturn, part trade links among nearly stagnation; Businesses generally see empty market outlook, falls to sell to reduce risk, or suspended from trading city on the fence. This round of alpha now no signs of stabilising, by the time zhejiang quzhou yuan and made the cut 50 yuan again in fujian were purchasing price, part of the plant remains have cut intend to. Therefore, scrap steel research group forecast and fall late space, scrap steel declines have not yet hit bottom, suggest the businessman still want to caution and operation.
Other News:
Blair: I chose not to fight the 'powerful' press
Finished product raw materials were not break the linkage
Everest season ends with 150 reaching summit
Pakistan: US missiles kill 5 militants in NW
Steel capacity head further south XiYi or aggravate endorsement unrest
World War Two battleship USS Iowa sets off on final voyage
Bad resonance steel price is difficult to thaw
Dario Franchitti's legend builds with thrilling third Indianapolis 500 win
