The contradiction between supply and demand is the biggest heart of the Steel City
 
The supply side, China Steel Industry Association data shows that focus on large and medium-sized enterprises in mid-June crude steel output to 1.655 million tons, late ring, down 1.74 percent, the national estimate is 1.9705 million tons, the mid-ring decreased 1.4%. The data also showed that the mid-end of key large and medium-sized steel enterprises 12.15 million tons of steel stocks, late ring, an increase of 5.6%.
However, while crude steel production has dropped slightly, however, does not mean that the steel market will win the inflection point.
 
Businesses understand the heart, the high temperature in July and August, and in some areas, outdoor projects will be affected, which means that the steel market, the downstream demand is difficult to massive release, therefore, in the case of the demand does not force crude steel production to decline slightly, and can not turn the tide.
The demand side, although in summer seized Hugh, a concentrated period of production, but this year, except for a few steel mills seized Hugh, the majority of steel production is still as usual, while business sales is still light as ever, the market mentality is more confused.
 
 
Businesses reduce the recent order, but the decline in spot market inventory is still relatively slow, indicating that the market demand is relatively weak.
 
Favorable policies or "impractical"
 
June is a good "get together" period for the Steel City, whether it is transportation, energy, water and other major projects to speed up approval, automotive, appliance a new wave of stimulus re-visit "the face of the medium to long term from a policy the market good. In addition, the People's Bank of China decided to cut financial institutions RMB benchmark deposit and lending interest rates since June 8, 2012. The one-year benchmark deposit rate cut by 0.25 percentage points year benchmark lending interest rate cut by 0.25 percentage points. However, the market looks like used to seeing the ebb and flow, do not move as positive.
 
In the face of the downturn in demand, any news of the positive cloud. With economic growth down gradually reduced inflationary pressures, "steady growth" have become the focus of the work of government, the late series of major project investment and construction is expected to speed up monetary policy tend to be moderately easy, but in the real estate control policies unwavering, stimulating investment in infrastructure, steel consumption is difficult to make up for the decline in market demand, consumption as a whole is difficult to move up sharply.



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