Uncertainty and European debt crisis worsened by the global economic situation, the impact of the domestic market, Germany, Italy, crude steel production fell. The domestic steel prices in June has been stabilized, but the rebound is smaller, downstream sales is fairly normal, but the price weakness, steel mills and traders are limited profits, some companies even at a loss.
Fundamentals, domestic crude steel, steel production continued to remain high, real estate new construction area and real estate development and investment to complete the amount of year-on-year growth rate continues to decline, the downward trend has recently slowed down slightly. The real estate sales and cumulative sales year on year growth signs of recovery, due to the rigid demand for the release of the real estate turnover has gone up. The market outlook, the need to focus on developers to buy land and new construction.
Raw materials, in the long run, since August last year, iron ore, coke, scrap, steel billet price has been in shock downstream trend. Since June, iron ore and billet prices have stabilized, but the afternoon rebound in steel prices is very limited space. In the context of the global economic downturn, iron ore prices or there is still a downside.
The macro side, by the European debt crisis, the European economic performance is relatively poor, high unemployment, and prices down, the economy entered a risk of negative growth. Is fairly severe at this stage of China's macroeconomic situation, GDP growth continued to decline, prices continued downward, the fixed asset investment growth also gradually lower. However, the means of the hands of the Government to regulate the economy still more, which cut the deposit reserve rate is still much room.
Technically, short-term steel price 4000 yuan / ton and a line with strong support, but the smaller the rebound is expected to shock rebound space is limited. 4150 yuan / ton above the resistance of the first rebound, rebound upward breakthrough 4250 yuan / ton less likely.
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