From the decline in steel prices, steel prices profit shrink, and we always have too much sympathy for the steel industry. We all know the factors affecting the steel price trend productivity in the short term can not be solved, and the demand in the housing control policy can not change too much, so only the breaking point in terms of cost, Today, steel prices almost fell to the lowest point, very flexible. To the second half of the domestic steel prices will stabilize state of affairs, then the iron ore will become the most important forces that support.
According to market reports, on the 2nd closing market river steel two big spiral price of 3630 yuan / ton, down 60 yuan / ton, compared to the previous day; market transit two big spiral of 3630-3670 yuan / ton, compared with unchanged from the previous day; the Guangzhou the market GISE two big spiral 3850 yuan / ton, down 10 yuan / ton, compared to the previous day. The closing price of the Shanghai market hot rolled for 3620-3650 yuan / ton, thinly traded market, the closing price of the Tianjin market hot rolled for 3610-3620 yuan / ton, down 20 yuan / ton, compared to the previous day. Domestic steel prices temporarily stabilized, but because of weak demand, the rally momentum, but is not very full.
Factors in long-term support steel prices higher for now, not much, despite the recent overhaul cut shouting slogans particularly warm But overall, the steel mills overhaul the intensity is relatively limited, the current market supply and demand is still there. According to statistics, the national average daily crude steel production in mid-July was 1.993 million tons, an increase of 1.78% compared with the early, crude steel output of China's steel mills are still at a high position, but also because of fear of the market share will be preempted, so many steel overhaul will not, but more production and more loss, the loss they had to face the choice of maintenance.
It is understood that the first half of the Steel Association member companies realized a total profit of only 2.385 billion yuan, representing a substantial decrease of 54.549 billion yuan, a decline of 95.81%. Enterprises suffered losses totaling 14.248 billion yuan, 33.75% loss. The loss of the status quo so that the steel had to overhaul cuts to ease the pressure of supply and demand. However, even the maintenance, it is estimated that this time, maintenance reduction effect also after 1-2 months in order to realize. Steel overhaul are basically steel prices continued to decline in steel prices to restore the stabilizing trend, steel mills will resume production, steel production can last long, so naturally it is impossible become the factors of the later support steel prices higher.
If the inventory low to help steel prices rebound, then, the pre-inventory continuous decline in more than a dozen weeks of domestic steel prices have not the slightest signs of warming facts, proved to affect the intensity of the inventory of steel price trend is weakening. And from recent inventory the current situation is not stable, according to statistics, as of last weekend, the total inventory of steel community down 0.67 percent to 15.38 million tons, including building materials, cold-rolled stock continue to decline slightly, but the hot-rolled plate stock is slightly rise, stocks rise and fall with the steel mills arrive in market transactions, the downstream demand conditions. The view from the downstream demand situation, short-term demand is still difficult to release the steel trade in order to avoid arousing suspicion, as much as possible to reduce stock, keep inventory low, but can not conceal the fact of weak demand.
Therefore, Suanlaisuanqu, only the raw materials at a later stage can support steel prices rising power. Steel prices in the background of serious excess steel production capacity in order to appear high, only by its cost of production decisions. In terms of raw materials, iron ore, coke, billets, there is the possibility of affecting the steel price trend, but in which iron ore is the most important variable.
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