Last week (5.28-6.1), May be time of farewell, boosted due to macro-level policies to benefit that a State "steady growth" policy of targeted, "Twelve-Five" major planning project to speed up, have been locked in silent steel market and saw hope, boosted the market confidence plus the stage steel iron and steel market in the peak season demand oversold, the industry believes steel rebound in June;
But analysts believe that, given the current demand for new growth point of no substantive led signs, steel no obvious production, crude steel production capacity is still at high levels, supply pressure reduction May production costs fell for June market price support weak; yield pressure, weak demand, shortage of funds will continue to haunt June steel market, prices shocks adjust slightly at the bottom, wave up but difficult to back April highs.
Therefore, analysts believe that the steel market rally May at first glance can only play a confidence boost, again June steel price rebound is limited.
Part of the decline of variety or chonggao, Board continue to vulnerable
At present, expand role played by good news still stay on the psychological level, popular for a short time in the past, substantive improvement in demand is still relatively far away distance. Expected domestic varieties such as construction steel, billets, profiles of the week prices possible chonggao down, sheet metal market continues weak.
As we all know, if the State increased investment in major infrastructure projects, benefit the most is undoubtedly the building steel variety. After this news, is the first reaction of steel futures market. 1210 threaded steel contract in Shanghai Futures Exchange prices up sharply on Monday and Tuesday on continuous, two-day gain to 63 tons, respectively, with $ 48, rushed up to $ 4,119, than at Friday's price $ 82, May 23 year low of $ 3,996 rose 123.
Steel futures and electronic disc prices boosted the previous intermediate traders and end users in a wait-and-see State began purchasing and drive around the building steel spot prices higher. Lange steel information center market monitoring show that as of June 1, 10 major cities in China 25mm screw-thread steel price is $ 4,075 at level two, week rose 24.
In the case of building steel prices rebound, downstream users purchase motivation is slightly elevated, around the building steel inventories continue to decline this week, only a small part of the city stocks slightly increased. As of June 1, 29 major cities nationwide building society inventory of steel amounted to 8.531 million tons, fell the week 295,900 tons, 3.35% down, over the same period last month drop 10.63% and 18.12% higher than over the same period last year.
Analysts believe that, stimulated by investments in countries positive news, domestic construction steel, steel, strip steel, welded pipes, profiles, and other infrastructure-related prices rebounded, but from project approval to started, after all, still have a very long time, market transactions only after the message come stimulate the part of the Terminal, as well as requirements for admission of brokers purchase of wait-and-see, it is difficult to maintain at a high level.
At the same time, in recent days the Commission "cannot introduce massive stimulus plan, just speed up the processing of a number of" Twelve-Five "has designed the project" stance is to let the market cool a little. Rebound momentum of such variety this week is expected to be weaker, varieties such as construction steel, steel prices probably will come down, screw-thread steel futures, are more likely to be dropped, and sheet products still run vulnerable.
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