During the year the central bank twice to reduce the bank deposit and lending rates, and two interest rate cuts by the time interval less than a month, the funding needs of the steel trade and industry is undoubtedly a good, but good ability to bring to the downturn in steel market improvement, the need to wait for the reply of the time.
Therefore, the steel trade and business should make calm response to the central bank cut interest rates.
The background of the central bank cut interest rates
Month cut interest rates twice this frequency in the history of moderate intensity, is very optimistic that the economic development status.
According to the official announcement of the profits of industrial enterprises above designated size from 1 May data show that profits of industrial enterprises cumulative growth rate for four consecutive months of negative growth, and a larger decline than previously continue to expand; July 1 June manufacturing PMI index to 50.2% record the lowest level in seven months. Industry analysts also said that these data indicate that during the Spring Festival since 2012, showing the downward trend of macroeconomic trends more clearly, PPI lower, the real economy downturn trend uncertain. Steady growth in the formulation, the beginning of the development, adjust the structure, control inflation "policy has not changed, only to increase the pre-tune fine-tune the intensity and frequency, but the rapid approval of investment projects starting in May, and today a two months to cut interest rates, again easing has been fleshed out, followed by a new round of expansion of domestic demand, steady growth series of policies will be introduced, but the short term effect on the economy will not only a psychological support.
The vigilance capital inflows steel circulation
Whether down the bank deposit reserve ratio or reduce the deposit and lending rates are to increase market liquidity and hope that these incremental flows to the real economy by the central bank's intentions, but the current economic weakness, significant new revenue in the short-term may be almost zero, driven by the interests, some funds will enter the capital area, the nature of capital will determine the fastest way, the most investment in the province, to complete the pursuit of interests. Steel circulation of capital into the deep industry, will become a large industry funding, which will have a direct effect on the downturn in the steel city, this effect will only cause short-term fluctuations of the market price of steel, not steel the market price of the substantive changes, this is determined by the nature of the capital. Therefore, the steel trade should be a high degree of attention to the field of steel distribution, changes in the amount of money, changes in the cycle of fluctuations in steel prices, changes in market interest rates and bank bills discounted price changes in response to capital inflows, the impact on the enterprise.
Well in advance to prepare for steady growth superimposed effect of the arrival of.
Steady growth effect of the initial measure is introduced, the policy start will not be obvious, but with the superposition of the policies, the continued decline in economic effect, and ultimately the economic development trend turned up. To this end, the steel trading business in advance to prepare: First, to establish a forecast for the current steel market system, pay close attention to the support of national policy object at this stage an important indicator of changes in steel prices, steel operations with modern steel market forward-looking; according to the price volatility characteristics of the steel market, and possible future of the new features of the marketing model suitable for different conditions of the steel market, waiting for the steel market has reversed conditions, timely follow-up; downturn in the steel market to stabilize the training of good steel marketing team. Concept of steady growth and in 2008 the situation is different, the future of the policy overlay effect, the steel market is still subject to a huge iron and steel production capacity, would then be possible on the steel market in the future, so that and out of there with ease.
In short, the steel trade the face of changing steel market, not only to adapt, and have a response to these responses should be adjusted as the steel market conditions change, the only way to the steel market is eliminated.
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