In late June, the rainy season in southern China steel prices one o'clock difficult to have rebounded sharply, the the Severstal market has trended weakness. Recently, the business very price will increase, the effect is not obvious. June 18, the Tangshan area profiles market breaking the dull market days rose from 70 yuan to 90 yuan / ton. 19, in addition to the channel by the tight supply affect prices after prices remain stable, the I-beam, angle steel prices both fell. Beijing Building Materials Market in addition to part of the specification to rise slightly due to less market resources, the maintenance of stability or slightly lower, is still the mainstream market.
The abrupt decline in sales
According to monitoring data show that, in 2011, since late June, steel prices began to enter the upward channel; end of July, steel prices rushed to the highest point of the year. In mid-April 2012, steel prices way down, so far no effective rebound.
Beijing the Pud Metal Group Co., Ltd. sales staff Yao Jie said: "This time last year is going up the trend, but now is dropping lower and lower, there is no end of the Beijing region and medium-sized steel trade enterprise shipments only in 1000 t ~ 2500 tons.
Chengdu region a trade in the steel industry for many years, recently served in a new steel trading company, Fu admits: "I used that company to do the main GB profiles, in August last year, monthly sales of nearly 10,000 tons in August only after the decline, It is said that 3000 tons per month to 4000 tons. "The rapid decline in sales caused the collapse of many companies. Fu said that the steel market this year there have been many office vacant, idle phenomenon, done relatively large businesses business put excess sublet space out. "Steel market Poxian to somewhat deserted.
Market downturn, a sharp decline in sales has been a serious overdraft in the patience of the front-line operational staff. "Pessimistic" and "confused" has been insufficient to describe their feelings, and Yao Jie said "numb" to describe the mentality of the people in the industry is more appropriate.
Despite the recent central authorities have already taken a lowered deposit reserve ratio by 50 basis points to speed up the approval rate of investment in infrastructure projects, speed up the central financial support for investment and many other measures, but the reaction of the steel city Poxian dull.
Analyst sermon: "A lot of good policy is hardly benefit the trade steel industry, or policy implementation lag in the favorable policies did not form a substantive market demand, we will not be these 'empty promises', 'kidnapping'."
Inventory downhill steel prices are expected to rebound in the third quarter
The steel of the social stock of China's major cities has been 16 weeks in a row down, but still high compared to last year. Beijing Building Materials, for example, statistics show that as of June 14, 2012, the Beijing area construction steel inventory of 625,200 tons, representing a decrease of 84,500 tons from last month than in June last year, up 44.65 percent over the same period. In contrast, demand is driven by seasonal factors less sheet stock compared to the same period last year declined, but recently, plate stocks by reducing to rise. "Although the major cities of steel stocks has been 16 weeks in a row down, but the drop is very slow compared to last year, or much higher." General Manager of Beijing Vanson Electronics Co., Ltd. the Xiaowen Ting said, serious excess capacity, for case greater than the sum of disorderly competition has improved remarkably, "Only after the market inventory decreased, the market was likely to change significantly."
More optimistic about the data is no small efforts to overhaul the domestic steel mills in May, average daily production of domestic crude steel fell back. According to the latest data show that China Steel Industry Association, the national key large and medium-sized steel enterprises in late May crude steel output was 17.734 million tons, the average daily production of 1.612 million tons, mid-chain decreased 4.7%. Expected in late May, national crude steel output was 21.556 million tons, the average daily production of 1,959,600 tons, mid-chain decreased 3.9%. Construction steel intensity of steel production has increased, the yield of a downward trend, which is conducive to the improvement of the steel market supply and demand, "analysts said. "In addition, the summer limited power, limited production situation will occur, but also conducive to the gradual improvement of market supply and demand." Thunderstorm added.
Despite the current poor market performance, but as the focus of approved projects will enter the construction of real estate investment growth rate down space narrowing, macro funds face is becoming more and more loose, three-quarter rebound in the steel city is still the market mainstream view.



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