An adequate supply of iron ore in the first half of the steel industry, the most traditional off-season, high temperature, heavy rain so that the downstream demand further limited, steel prices rebound for how long remains to be seen.
 
Since July, the steel spot market prices to accelerate the decline, down nearly 10 percent. As the supply pressure is too large, the steel industry finally began large-scale maintenance shutdown. By the news boost the mentality of the steel trading business, improved steel prices began to rise slowly.
 
The continued downturn in demand for long products of the social stock remain high
 
Recently, the domestic market panic enveloped, businesses offer confusion fell. Site in order to reduce costs, procurement obviously slowed down, further exacerbating the price decline, the average steel price decline in the per ton of hundred dollars or more.
 
Under the accelerated decline of the stock market in steel prices, businesses on the one hand speed up production, intended to reduce losses; the other hand, the order will generally not high, coupled with the slowdown in site procurement, shipping is very difficult, therefore, the rebar inventories decreased slightly.
 
End demand continues to be dejected, the steel market prices kept falling, however, steel mills for their own reasons, is still difficult to reduce output.
 
According to the China Steel Association statistics show that in early July, the national average daily crude steel output of about 1,958,100 tons, compared with late June decline, however, a smaller decline in steel production enterprises difficult.
 
Downstream side, end demand continued dejected, but, competition is fierce among the steel mills, attracting dealers ordering the generous policy after another, this week, rebar price decline difficult to stop.
The data show that as of July 20, the domestic focus of market rebar social stock 670.78 t ring a decrease of 0.22 percent over the previous trading week; wire of the social stock of 1,770,700 tons, a 2.82% less than the previous trading week. The total inventory of major cities building materials increased by 33.6 thousand tons to 8.4785 million tons; various varieties of social stock to 15,483,500 tons, an increase of 11.51%.
 
Ore price linkage decline in the cost of support weakened
Recently, the domestic mining iron powder market prices continue to fall. Steel demand in the off-season is now in the days of falling building materials prices to the market covered with a layer of heavy shadow. Billet price has fallen sharply last week, record low during the year. Tangshan area, iron price declines are not large and firm prices mainly due to the recent mine to rectify frequently low iron concentrate resources to tighten and steel stocks. Imported ore market decline, the weak state of mind of market participants, resulting in market activity is low, turnover.
 
Recently, in the deep fall of steel futures, spot, billet prices under pressure, the futures market to decline, prices continue to fall, transactions rarely.
 
Mine tender transaction prices keep falling, but the tender was reduced, mainly because mine do not want to accelerate the decline in market price driven in the downward channel. Spot the two platforms have a certain amount of the transaction, the price record the last stage of low.
 
The outlook is less optimistic, resulting in the steel mills at this stage more than to perform long-Concord procurement steel stock to maintain production and easily without purchasing futures; traders will not dare to purchase, even if the procurement, but also more rapid operation of back-to-back, to avoid risks.
 
Imported ore futures market from the short term, short-term transactions there will be no major change, the price will continue to maintain the downward trend.
 
It is estimated that the tax cost of key enterprises in the two rebar factory is about 3869.19 yuan / ton, tons of steel a loss of 329.19 yuan / ton, the gross profit margin was -8.51%.
 
In summary, since the first half of the mining giant's iron ore project made significant progress, the market adequate supply of iron ore pattern has been difficult to change. Although the latest in July HSBC PMI preview value rebounded slightly, but the industry is expected not improved, the continuity of data for improvement remains to be seen. Steel prices or short-term oversold bounce, but the range is limited.



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