Steel City "Golden September" weak demand
 
View of the steel production is declining dramatically difficult, more expectations placed on top of the end demand for steel market pull to. Downstream demand overall recovery is slow, National Bureau of Statistics data show that a July year on year growth of investment in fixed assets and the first six months flat.
 
Countries to increase investment in the real economy, in order to stimulate demand development, but the project approval to start to go through a very long time, although recent rumors that the approval has been accelerated, but the Development and Reform Commission "can not be the introduction of large-scale investment stimulus plan, just to expedite the approval a group of Twelfth Five projects designed to "position, so that the steel trade is no longer count on it. The steel market transactions only in the news after the introduction of stimulated demand for Admission purchase of part of the wait and see the terminal, as well as brokers, it is difficult to continue to be maintained at a high level.
 
At the same time, automobiles, household appliances, machinery industry growth rate of low levels, railways, highways and water conservancy facilities, represented by large-scale investment in infrastructure not seen improvement, coupled with high temperatures and rainy weather and steel continued to cut prices to make the market unstable state of mind, downstream customers have taken delaying purchases or using buy with strategy, terminal procurement volume growth is almost at a standstill, the weak downstream demand for price support is very limited.
 
Demand for steel is compared to previous years, should still be some growth. "An analyst said that the" fixed asset investment and industrial added value grew, the key is the situation in the steel industry this year. changes in the circulation of the reservoir in the past, this year it's function is no longer so vast, and the continued downturn of the steel city of downstream users in the raw material stocking is low inventories and zero inventory stocking, so it is the goods on the market , and the demand seems seems to be less. "
 
The analyst also pointed out that this year's steel production capacity of continuous high temperature release in July, Nissan is still 1.99 million tons, from March, crude steel production for five months more than 60 million tons, the contradiction of supply exceeding demand is still quite prominent .



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