Stock market losing streak than steel futures to new lows, the steel market down cycle is simply no end in sight. Coincides with the traditional off-season, the demand is certainly mainstream steel mills continued to decline in value, the steel market has become the people "hope in sight". The industry has already begun to discuss steel prices "will record the lowest since 2008.
Following the thread main futures contract 1301 last week down 2.55 percent this week, threaded futures continue three-session losing streak, fell to 3557 yuan / ton, "a new low and low" people have been commonplace. Thread futures sharply Masukura downstream positions, trading volume hit a new high of nearly two years, the price to new lows, and that filled with the atmosphere of the market on the short, extremely pessimistic mentality.
The spot market is equally dismal. According to data monitoring, in addition to Shanghai regional steel prices remained stable last week, Beijing, Guangzhou regional price continued to fall in the range of 20-40 yuan / ton range. As of yesterday, this week there has been a decline of about 20 yuan / ton.
The leading steel mills continue to decline in value. Baosteel, Wuhan Iron and Steel and Angang has unveiled Sept. plate price policy, a further drop in ex-factory price of hot-rolled, cold-rolled and other mainstream varieties 100-200 yuan / ton. At this point, within three months of the third quarter, sheet manufacturers prices continuous, full cut, plate market needs downturn, is evident.
Raw material prices come down substantially. According to the monitoring, after last week, down 100 yuan / ton since the beginning of this week, Tangshan billet again accumulated plunge 120 yuan / ton, the current market price of 3030 yuan / ton; taste dry Tangshan area, 66% iron ore price 1020 yuan / ton, down 50 yuan / ton, compared with last week. At the same time, the grade 63.5% Indian iron ore outer disk offer close to 110 U.S. dollars / ton, compared with last week fell to 10 U.S. dollars / ton. This week, the price continues to decline. Insiders boasted, "iron ore prices to see less than $ 100.
Despite the contradiction between supply and demand has been very intense, steel mills cut did not really implement into practice. According to CISA statistics, in early August, the domestic focus on large and medium-sized enterprises crude steel output was 1.6205 million tons, late growth of 0.82%; estimate the average daily production of crude steel in the country is 1,969,900 tons, late growth of 1.05%. Insiders said again rebound in crude steel production, steel production is still waiting to see mostly superficial, which also makes steel prices down cycles again extend short-term bottoming basic hopeless.
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