Since early June, with the economic fine-tuning policies have been introduced, the billet manufacturers confidence in the steel market has been enhanced; at the same time the leading city of Tangshan billet supply declined, so the billet market the opportunity to rebound in the stock market of a wave. But did not last long, due to the unstable state of mind of the billet poor end demand and downstream manufacturers, it can not store blanks, so then the price of a slight correction of the stock market. At present, the billet supply and demand than less market the pessimism growth concentrated in the case of poor stock market, futures and the environment at home and abroad, and their prices will emerge to continue dropping slightly the market.
 
1, billet supply and demand double low Shangqie balance
The continuous decline of the stock market since mid-April, Tangshan billet market, the market pessimism is strong, traders have low Paohuo, minimizing the hands of the inventory. At the same time, with the decline in billet prices, steel profits decreased, and a loss state, some steel mills in order to reduce losses, increase the yield of finished products, thereby reducing sales of billets, individual steel blast furnace overhaul June, billets, supply has decreased. With the introduction of fine-tuning policy, some preliminary repair roll manufacturers gradually resume production, leading to the billet increased demand on the market billet stock resources are limited, so manufacturers the opportunity to pull up the billet offer. Billet prices, market demand does not continue to release, so then the billet prices showed a slight correction situation. Tangshan steel billet market supply and demand than less, and Shangqie balance between supply and demand.
 
2,Traders pull up active steel mills operating with caution
Recent Tangshan region billet price is a bit confusing. The stock market has very limited resources, the majority of traders stock, selling mainly to steel straight hair, so the sales pressure is not great. In this case, traders offer generally lower than the steel prices 20-30. Steel seems very calm, subdued demand in the downstream case, the manufacturers actively shipping, not dare pull the price.
 
3, the market mentality to unstable
In mid-June, Tangshan billet market, despite the rebound in the stock market, but the upstream and downstream firms do not buy it, most manufacturers still wait and see, not the intention of the stockpile. In addition, other domestic markets with up emotions, most manufacturers are still active ship-based. It can be seen from the market performance, downstream on billets rise is not recognized, the market outlook is still more cautious.
 
4, the raw material market began to loose
Important supporting force since early June, the domestic iron ore prices for slightly pull up the market, this is also the billet rebound. Billet sales have been a loss of steel mills on the high price of iron ore procurement deposit resistance, the recent iron ore contract situation slowdown ore manufacturers in order to stimulate shipments, recent ore prices slightly lower. The coke market has been underperforming the market supply and demand contradiction, the continuous price decline, and vendors on its market outlook is still pessimistic about.
 
5, some businesses still exist financial pressure
Recently the central bank of deposit reserve ratio, deposit and loan interest are down, but many small and medium-sized iron and steel traders still reflect the tension in the capital side. Its main two reasons, First: As the steel industry profits, the amount of funds used, the banks are reluctant to give the steel industry loans, especially medium and small traders. Second: Because of the poor end-market demand, which makes business capital "speed" slow, thereby increasing its capital pressures.
 
Consider the short term, billet vulnerable run trend is still hard to change, and the prices there are downside risks. But taking into account the sale of the basic loss of steel billet manufacturers, steel mills on its downward price must exist resentment, coupled with listed court billet resources not billet fell more slowly, or showing a slight concussion in the downward trend.



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