Points breed look, the steel market overall operation last week in 4300 yuan/ton lower part, for three days and a half weeks after a recovery, but still a modest fall month-on-month weeks. Steel price index showed the comprehensive, June 1, the absolute price index is 4267.3 yuan/ton, a week before a drop of a4.7 yuan/ton, fall obviously narrow. The international market of the early relative quiet, steel market continues the inertia of the previous fall.

Iron ore market performance last week is active, the week in price for the first time since April rebounded, the price picks up also mainly in the second. According to the iron ore price index showed, June 1, domestic iron ore trading at 1015.5 yuan comprehensive/tons, a week before a rally 3.4 yuan/ton. For the first time since April 5 weeks annulus comparing rose. And the steel market rebound similar, good is expected the market is going good important factors, meanwhile, was substantial rebound billet market also directly led to the iron ore market is active. Last week the tangshan billet a touch on the rebound, Monday to Wednesday's continuous risen 50 yuan/ton. Domestic steel also from filling library need to stage purchasing iron ore. Beijing and Singapore spot trading platform two big platform also appear JiSheng quantity and price of iron ore, the futures market is tender has dropped, price also has rise. Iron ore market rebound on the trend of all. However, the market still occupy the most cautious attitude, after all the current clinch a deal is still limited, and persistent remain to be conclusive.

BHP billiton is expected to slow China's iron ore demand
Ian ASHLEY is at present than BHP iron ore business President, on March Australia Perth industry on congress, say a trigger the world largest mining company valuations fall market value of the conclusion: China's iron ore demand growth rate will drop to single digits, China's economy is transformation, is changing, steel demand growth will slow. Soon afterwards, the responsible for iron ore business eight years, for BHP contribution of 25 youth Ian ASHLEY by company officials announced it will than on June 30, leaving formally, the industry he is leaving because guess in iron ore business development, and leadership produced directional differences.

Back in domestic, we look at the latest demand of steel enterprises. According to the Chinese radio network reports, in the near future, the iron ore prices with the steel price falls, but sales are sluggish and many shipment was delayed. At present, such as rizhao port Qingdao port appeared the backlog of iron ore, ports in mountain mineral, part of the port has reached the backlog of millions of tons of quantity. Qingdao port is China's largest iron ore import one of port, iron ore imports accounted for almost 1/7 of China's total imports. More recently, ten million tons of iron ore stranded in Qingdao port and has become difficult to burden is heavy. Can be calculated, steel enterprises are currently having capacity after producer price steel growth continued to slide, thus DaoBi raw materials such as iron ore iron slide, port ore it serious backlog is reflecting, steel enterprises at present in raw material purchasing cost control is quite cautious.

A lack of demand support domestic pressure increase endorsement
According to the latest market report, in the supply and demand of the imbalance in domestic endorsement, macro economic through out of the end of "good" factors market is easy to digest. The current economic development met a lot of resistance, the national policy on railway investment, to home appliance and automobile manufacturing industries such as provide the good policy to the test of time and good effect to the actual time confirm. The current market clinch a deal "pull up", steel trading businesses look again the emotional coherence.

According to information, recent price in south China is still dwelling endorsement may adjust the prices of the relative low since, hot rolling 5.5 mm * 1500 general volume in 4250 yuan/ton maintain nearby; Cold rolling 1.1 2.0 mm * 1250 at high volume offer gradually a new low, the current the specification clinch a deal valence basic in 4700 yuan/ton or so. Despite the hot rolling plate roll inventories have last week dropped, but cold rolled steel sales are difficult, inventory has been high. Most businesses to avoid losses quickly throw goods, cold, heat resource price game each other, steel prices continue to rise in the short term there still exists certain pressure.

Analysts think, the decline in stocks on one hand and the market demand of the season have a relationship, even though endorsement is still weak operation, but demand or some, cause the steel material inventory continues to decline society; On the other hand also and steel trading business operation mode changes has the very big relations, now a lot of steel trading business not to be willing to inventory, with low inventory and even zero inventory approach, the orders from steel mills to order directly to send to the user.

However the continuous decline inventory not just because of rising demand. Steel shunt more goods, and a large part of the goods directly to send to the end user, the businessman business by certain influence. Therefore, the change of the inventory of the influence of the steel market is also is very young.

And although has 15 consecutive weeks inventory decline, but inventories were still in calendar year high, only steel production would appear true to the inventory. At present in steel production cylinders, the short time NaNan have change, if not big profits element up in time of words, steel price and may continue to fall.

For the development of the market outlook, industry insiders wit.
Have analysts think: "single inventory decline from the single index, and can't see the trend of the market outlook, can only say that the decline in stocks for market outlook is an good factor. Steel market potential, the contradiction between supply and demand is still serious. At present demand of yield and still don't match, looking forward to national related policies, can further pull steel demand. So, now the search of the steel price in the policy clear last may have certain improvement."

Experts think, recent steel market weakness can never change. On the one hand peripheral European political uncertainty change increased, to domestic steel market developed to a certain impact; On the other hand, the lasting steel price drop, and make the steel mills were involved in the condition of deficit. At present there are still very high steel iron ore inventory need to digest, and so no reduction plan, even to crack down on ore to price, lead to short-term production will still high. In the above factors of increased, the steel market short-term vulnerable pattern can never change, will continue to drop the movements of the concussion.

However, in the unfavorable factors exist at the same time, positive factors also appeared frequently, steady growth of the macro economic become first, national policy and financial policy respectively from the consumption of the entity economy gave "under attack




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