Of steel, the main 1210 contract after pre-continuous decline, access to support at 4,000 points and a rebound, but space is limited, the overall maintenance of range bound pattern. I believe that short-term due to short power relative to contend with of steel shock pattern is hard to break.
 
From mid-March, China's major cities of steel stocks started to enter the channel to the inventory, the first weekend in key cities rebar inventories consecutive 16 weeks of decline, the cumulative digest steel 1.8 million tons, but the hot rolled stock after 16 weeks to stock after two consecutive weeks to increase, following the hot coil to the inventory after the interruption, the wire stock last week but also the end of 15 weeks in a row downward trend, a slight increase. Usually into July and August, affected by weather factors, such as Southern rainfall and northern high temperature downstream of the real estate industry, the construction schedule will be affected to some extent, there will be signs of slowing down, is expected to post rebar inventories will also rise, not fall. Still excess production supply, the product stream running under the background of the domestic market to the inventory process termination will result in rising inventories and depress steel prices up space.
 
Transaction rebound phenomenon probably dates back to March of this year, when much housing turnover to pick up. From the Bureau of Statistics data, the real estate industry of the first five months of this year, a number of indicators of deterioration trends, real estate development and investment, new construction area, construction area of ??an increase to a monthly decline in April, the new construction area is the emergence of year-on-year negative growth for the first time since the fourth quarter of 2009, the new construction area in May to continue year-on-year negative growth, and the decline tendency to expand.
 
The construction project construction, typically steel project was originally foundations stage the largest, the significant downturn in new construction area, no doubt on the steel industry to have a larger negative. The property market pick up in order to digest the stock room for the real estate industry, construction, and demand-pull effect is not temporary, but the property market to pick up a certain extent, boosted investor confidence, the latter need to pay close attention to the real estate enterprises to take place.
 
Steel prices fell in mid-April, stabilized in mid-May to late. Ore prices due to a lag effect in early June, still showing a slow down trend, but the first to rebound in the mid and late June, imports 63.5% iron ore fines in India two weeks rose to $ 4.5, in this circumstance, the domestic price of iron ore rebounded slightly; the Tangshan regional 20MnSi billet prices distinct rebound in mid-June, the highest single-day or 50 yuan. However, due to excessive gains in the downstream users still can not fully digest the most recent days Tangshan billet prices start Yindie to.
 
Relative to the rapid response of the price of raw materials, steel spot prices are more sensible, and key cities in steel prices since mid-May to late stabilized stabilized, has been more than a month. Raw material prices rebound in steel prices stabilized to some extent, even upstream to play a weak supporting role. Steel situation, sand steel rebar prices in June consecutive Sanxun flat reported also show that the steel more cautious attitude, no apparent direction of the background in the spot market, the steel mills are more willing to maintain a wait-and-see attitude .



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