As the saying goes: "the blacksmith needed its own hardware, the moment the steel market is it not? In constant fundamentals bad, the macroscopic surface of the positive maximum can only serve to boost market confidence, the steel market improvement in the final depends on the downstream face of demand, the business does not cut interest rates and other favorable dazzled.

[Iron and steel industry information
Futures: steel main 1210 contract intraday shock rebound, midday, to close at 4127 yuan, or 0.32 percent, coke, the main 1209 contract intraday continue to fall, midday to close at 1797 yuan, down 1.16 percent.

Spot market: the spot market today, the price of most areas running smoothly, a slight rise in individual regions, including Shanghai area three rebar to continue at 4160 yuan / ton and Tianjin, three rebar was up 20-4150 yuan / ton.

Raw materials: 63.5% / 63% Indian iron ore fell slightly 1-137 U.S. dollars / ton, domestic Hebei Tangshan ore prices continue to report in 1080 yuan / ton, unchanged from yesterday. Sea freight, the Baltic Dry Index of bulk shipping due to concerns about the economy and the low iron ore trade, it has been for 11 consecutive trading days of continuous sharp decline, reported to 872 points, down 0.68 percent.
Inventory: the statistics show that as of June 1, 2012, the country's 26 major markets five varieties of steel Social inventory was 15.615 million tons. Previously, economic development research center for metallurgical industry sources, domestic consumption and export demand for only about 700 million tons, compared with last year, 900 million tons of aggregate demand, excess steel production capacity to 200 million tons. Obviously, the internal inventory of steel has come to a critical point; How do I clear the backlog of inventory will be the main task of the post-stage steel.

Demand side: the face of the real economy further slowdown in the external environment is very unstable, countries have introduced measures since mid-May, more concentrated, mainly reflects the steady growth in the State Department clearly signal the introduction of 265 million energy-saving appliances subsidy policy, Development and Reform Commission project approval speed, as well as today's central bank cut interest rates. Should be noted that these measures are the fine-tuning, which determine its role in the market requires a relatively long time, short-term difficult to have a practical effect.

Production capacity: mid-May, the chain of national crude steel output fell 0.3 percent to 2.0395 million tons, but on the mid-crude steel production is still higher than 200 million tons, in the history of the highest level since. At the same time, the steel export orders decreased, coupled with the steel inventory levels weaker than last year since mid-February, five species inventory a total of 15.62 million tons, compared with the same period last year 1.19 million tons.

Steel areas: building materials after five up one level plus 3 drop a level, it's still in the downlink channel. Shagang introduced early policy on June 1, two-thread ex-factory price 4050 yuan / ton, compared to last year prices were flat over the same period the Shanghai market spot price of 130 yuan / ton higher, the spread widened. Compared with the mean, there are still some upside driven rebar futures first to rebound, and then because of the favorable policies, and subsequently stimulate the upstream of the spot market price, and suffer no substantial demand for strong support, and might not last long. If the post-market prices finished lower, the mid-sand steel ex-factory price or will continue to face price cuts risk.




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