The second quarter of the annual steel consumption of the most popular season. Consecutive years of experience in the financial crisis showed that the second quarter, not only is the culmination of the annual output of crude steel in China, is also often apparent consumption of crude steel last year, the amount of vertices. This little difference before the financial crisis, this may be related China's economic down gradually.
 
For the steel market environment, the contradiction between supply and demand game has always been difficult from the fundamentals of the orbit. Seeing regularity Steel City in July and August "low season" at full speed to hit the affected, Steel City, "off-season, however, with the" good news "of crude steel in the industry analysis of supply and demand levels can form a stable weak balance?" short space is that there will be? In this regard, the industry view is that: compared to previous years, this year's "low season" level or limited.
 
Crude steel data: supply peak or over
 
China's crude steel output in January-May 2012, the Province statistics
Industry analysts, the average daily crude steel production of 2.02 million tons in April, the average daily crude steel apparent consumption of 1.9 million tons this year, the two high points are over. Can also be said that this year, crude steel production peak may have gone.
 
The 2012 follow-up new capacity supply is mainly from the small steel enterprises
 
2011 China's steel industry is not ore investment total investment of 386.1 billion yuan, the first five months of this year, the steel industry is not ore investment growth rate of 8%. Investment accounting for up to 70% in the 2011 non-key steel prices and lower investment costs of small steel prices per tonne of steel, which can be judged this year's new capacity more from these small steel enterprises.
 
Industry risks are still ugly and good, the overall profit
Industry analysts, the first half of the number of small steel enterprises still a little profit, and follow-up with the new capacity into production of these small steel enterprises will further squeeze the profits of state-owned or large steel enterprises have the same production line. So the profitability of the steel industry as a whole still optimistic about the difficult, but steel stocks cheap valuations, resilience and flexibility advantages, thus giving the industry an "overweight" rating. Subsequent market still need to focus on their risk: Beware the disposable reported loss of the steel prices; ore will be an oversupply; steel need to be further decreased.
 
Demand for "low season" approaches, but the short-term impact
Currently, the average daily take the volume lower than the 40% decline significantly narrowing the social stock market multi-microscopic findings indicate that the off-season characteristics of the steel demand has begun to show. However, the short-term funds, cost, production and partial positive taking into account the expected "low season" limited impact on the market.



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