The central bank decided to cut RMB benchmark deposit and lending rates of financial institutions since July 6, 2012. One-year benchmark deposit rate cut of 0.25 percentage points, year benchmark lending interest rate cut by 0.31 percentage points; other deposit and lending interest rates and individual housing provident fund deposit and lending rates be adjusted accordingly. Times a message is a cause of concern and analysis of all professionals.
The cut interest rates relative to the continued downturn in the steel market prices will not be rebound? Analysts believe that the need for analysis from the points:
1: According to CISA statistics, 1-May focus on large and medium-sized steel enterprises realized a total profit of only 2.533 billion yuan, down 41.56 billion yuan, a decline of up to 94.26%. In contrast, the sales profit rate of these enterprises is only 0.17 percent, down 2.73 percentage points, the steel industry is still in the loss of the edge; until July 6, the steel plate has 19 listed companies to publish the results of the 2010 mid-year report early warning, including the six listed companies in the pre-increase and a slight increase, accounting for three percent of the release reporting the results of early warning, reporting the results of early warning pre-reduction, the first loss, slightly reduced by the listed companies accounted for nearly 70%. Shougang shares expected loss of 250 million -3.5 billion in the first half, net profit of Wuhan Steel shares is expected to decline more than 50% the Shagang share of net profits expected to fall by 60% -90%. The rate cut will reduce the cost pressure on steel prices.
2: cut interest rates after the reduction in lending rates will stimulate housing demand, to some extent stimulate the development of the real estate industry, the demand for steel will increase.
3: According to statistics, as of June 29, the National Society of steel inventory was 15,630,300 tons, Pericyclic than a rebound, but the inventory for several weeks in the mitigation of the contradiction between supply and demand is still very sharp.
The main factors to affect the steel market price of the supply and demand factors, although the interest rate cut, although to some extent, alleviate the cost pressure on steel prices and contribute to the development of the steel industry in the real estate, but faced with the yield high, weak demand in the steel City rely on interest rate cut hard steel prices this connection reversal, may boost market confidence, to some extent, the decline has been received slow. Predict post-Steel City will continue to weak shocks.
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