This round of steel price drop has lasted seven weeks, at present the short "taking a", in the low post stabilising, but to follow up the deal is not enough. The short amount produces though slightly dropped, but still at record levels, such as billet and raw material prices in "can't wait" towards the ceiling, steel mills benefits were tested again, building the endorsement is difficult to eliminate the fundamental contradiction of supply and demand.
 
According to the monitoring, Shanghai construction steel price drop in this round for first time since stabilising. By 1, reported in 4030 yuan a ton of price, the cut $10 a week. At present, Shanghai quality level 2 rebar representative specifications of tons price in 3970 yuan or so, and as a week; Shanghai quality level 3 rebar offer every tons in 4100 yuan, also with the week flat. The people in the market, said this round of steel price fall began in mid April, for seven weeks is still difficult to see bottom, most of the strains in the general price since a year and a half of low level. With steel futures prices take the lead in rebound, the endorsement of the spot price also appeared signs of stabilising. But, the market the actual transaction follow up insufficient.
 
Steel price changes with cash, though not the same reaction of steel mill, but the total mentality still hope to "seize fleeting time" to improve the operation in how much a dilemma. From building steel situation, the factory price of the adjustment of the direction is not consistent, part of the original high steel mill pricing, continue to implement "fill fell" measures, but with spot steel price rebounded, on the steel factory to rise significantly increased. It is worth noting that, some steel mill pricing policy has already become more and more rational than ever before, which considers the guarantee of the profit space, and to ensure the delivery. The release of steel production, has also increased some flexibility, according to the latest statistics steel association, mid-may key steel enterprise crude steel production ten-day average daily new homes dropped by 0.35%. However, most insiders think, so production adjustment range, obvious enough, steel production is still in high of history, domestic steel did not appear substantial losses.
 
Raw material price is always "up easily fall difficult". As long as a "slight" endorsement, raw material price to follow up the "sensitivity" really impressive. At present, as the most direct construction steel "way before" cost factors of billet prices, already rallies. A period of time before the falling price of iron ore, also began to stabilising, the domestic price of iron essence pink keep basic smoothly, steel purchasing a little increase, the market clinch a deal better. However, most businesses are still in a wait-and-see mode. The price also is mine maintain steady, 63.5% of the grade India powder grinding offer around us $137 / mt, and at last week. Port spot price rise is steady ore, enquiries better. But many steel mills or afraid to large-scale store up goods, with on-demand purchasing primarily.
 
According to relevant organizations, analysts said spot even though stabilising steel price, clinch a deal amount but still at low price is still difficult to form strong support. This shows, the purchase or downstream user tends to cautious attitude, itself also is difficult to endorsement "price bottom" form the same judgment. The price of raw materials fast rebound, makes this right in the edge of the steel mill is losses add insult to injury. The endorsement contradictions between the supply and demand, form is not "a cold day", eliminate is it "built in a day", the industry chain "random strain" and "you shock I should be," I'm afraid not solve the fundamental contradiction of policy.




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