Into the second half of the iron ore market run is still hardly be optimistic about the national macro-adjustment policies to relax, but the criticism of the internal structure of steel prices difficult to change, thus the overall market pressure in the second half of surviving.
2012 iron ore market is running more than half of the overall market can hardly be optimistic about the iron ore supply and demand both in the "difficult" to live, worrying the profitability of the entire steel industry, a direct impact on the procurement of the steel mills for iron ore and other raw materials from quantity, price, both strictly control and suppress the tendency to the formation of the iron ore market, the end of June, the largest decline of the domestic ore market price of 120-140 yuan, the average decline in the imported ore spot price of 70-80 yuan smaller than that in the Indian powder small, pink bar is relatively large decline, the most significant of 110-130 yuan. June, the policy side to relax the activity of the iron ore market significantly enhanced in the ore selected enterprises operating rate, combined with steel, iron ore stockpiles down to low, the domestic iron ore market bottomed out rebound, traders reluctant to sell emotions increase. Analysts said the domestic steel industry is in "high-low price" case, the positive negative factors of the iron ore market mutual influence, the iron ore market in the second half showing a narrow range trend, three-quarter run quite difficult the fourth quarter, the market or a slight rebound.
Analysts specific analysis of the main factors are the following: from the funding policy side, June 8, July 6, the central bank cut interest rates, indicating that the funds loose gate ajar interest "market-oriented process intensified mitigation of financial policy, the operation of the steel industry to form a good surface, especially the loss of status for the entire steel industry or alleviate the effect, which, to some extent for the procurement of raw materials prices squeeze or relax the space.
In addition, he thinks from within the market, domestic ore prices basically formed bottoms support a sharply down market, the overall price fluctuations in the 200 yuan in October 2011, in particular domestic ore prices have little room for downward adjustment Tangshan region, for example, as of now, 66% acid powder dry the base tax price is about 1110 yuan, compared with the beginning of the year decreased by 70-80, imported ore spot prices fell by an average of 50-70. Due to this year, most of the single ore election profitability, and more in a shutdown state, thus the supply of domestic ore is always in the gap, most resources are concentrated in the large ore selected enterprises on the scale of the overall market price formation support, coupled with the supply of the imported ore from the amount of support the role of prices is obvious supply of imports of mineral resources is still occupying the iron ore market "half". Overall market supply and demand, basically in a state of relative balance, and in the case of imports does not appear to significantly reduce, for slightly larger than demand conditions, for the iron ore market or still be inhibited, but the stage bottom support formation.
"And from the downstream market, the market price of steel has fallen to the nearly 2-year low, the end of June, the domestic focus of the city Ф6.5mm line average price of 3910 yuan, compared to June fell $ 210-220 mainstream billet prices 3450 yuan, compared to June fell 120-130 yuan from the point of view of the current cost of steel production, the overall market fundamentals in the "profit" status, the difficulty of continuing downward, with the loosening of the policy side, the steel market in the second half slightly up the possibility of increase in potential, thus the formation of favorable support for iron ore market, very price willingness to highlight the analyst said.
Addition needs to be considered a factor in the steel market weakness has been a continuation of the market prices continue to hit new lows, "Forced" cost line down the room to fall mainly in the imports of mineral resources, due to the current mainstream varieties of market of imported ore is still maintained at more than $ 130 the price of imported ore market still room for downward adjustment in the downstream market continues to decline, only the overall price of domestic ore is approaching the cost of production down very limited room, resulting from cost accounting to consider imported ore market decline or bearish factor.
Other News:
The second half of the iron ore market can hardly be optimistic
TIMKEN bearings burn test analysis and prevention measures
The study said the Australian mining industry growth will slow
Japanese Prime Minister: to fight in April next year, ＂nationalization＂ of the D
Germany has ratified the EU assistance to the Spanish banking agreement
Steel prices freefall collective contraction of the steel trade and industry fro
Sino-Japanese confrontation over the Diaoyu Islands is only fuse
Beijing rainstorm out of China's modernization prototype shocking
