Cut interest rates to boost market confidence
 
Symmetry and after the central bank cut interest rates the central bank opened the asymmetric interest rate cut, the door: one-year benchmark deposit rate cut of 0.25 percentage points, year benchmark lending interest rate cut by 0.31 percentage points; other grades The benchmark deposit and lending interest rates and individual housing provident fund deposit and lending rates adjusted accordingly.
 
Analysts believe the central bank unexpectedly cut interest rates may mean that the second quarter economic data is not optimistic, but also shows the determination of steady growth.
 
Liu Qiuping analysis in addition to interest rate cuts outside the view that the central bank also rare in the open market for implementation of the reverse repurchase, July 5 Shanghai large bank acceptance bill discount rate is 4.31 per thousand, compared to June 25, down 4.43 %, showing that pre-funding constraints trend has abated.
 
Wang Guoqing, industry experts shared the view that the central bank cut interest rates on the Steel City is a good news. "Real estate signs of recovery and the rigid requirements of the central bank's interest rate cut will give an real estate play a catalytic role. Overall, the central bank to cut interest rates can make financing costs reduce, helping the upstream and downstream enterprises in the steel industry lower costs in the current downturn in the economic environment for the iron and steel enterprises can also reduce the cost of financing, "the central bank cut interest rates is a good thing to promote the role of the rigid demand of the real estate purchase, real estate agent or indirectly on the steel for beneficial to the cargo business, the Steel City confidence boost. "Wong Sze, deputy general manager of the Tianjin Chen steel market says.
 
Difficult to have a substantive positive
 
But in the short term, substantive positive effect of interest rate cuts is difficult to perceive. Liu Qiuping believe that the current policy of positive face of the weak fundamentals. Supply and demand are deadlocked over the serious contradiction steel pressure on the stock is still dominant, and the late steel price to transfer stock to the market process, or will the stock market to remain under pressure. Supply and demand sides also weak, and the limited space of the price adjustment.
From the supply situation, the average daily crude steel production in mid-June, there are 1.97 million tons, production intensity is less than 3%, the contradiction between supply and demand did not improve, the price at the bottom of difficult to really lay.
 
According to monitoring, the national inventory has begun Masukura uplink. Steel inventories remain high and more concentrated late steel inventories still accelerate the shift to a market or to increase the market price pressures. "At present, the steel trade enterprise financing difficulty is indeed there are signs of improvement." Metal Materials Chamber of Commerce, the Secretary-General Zhang Chunlu. Coupled with the good news of the recent year the central bank cut interest rates, etc., really is a good start. But the credit situation to further improve the still face uncertainty.



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