Cisa: steel price close to the bottom in the second half of the demand is expected to grow

The China iron and steel association, monthly analysis report, released on July 17 in June this year, the iron and steel production to maintain a high level and demand growth, the contradiction between supply and demand of steel market did not change, steel prices continue to downward trend. Late market with steel production down, enterprise losses increase, steel prices also gradually close to the bottom, will show low volatility. Cisa is pointed out that at present our country is still in the process of industrialization and urbanization accelerating, both in terms of quantity and quality improvement, there is greater potential for investment and consumption. Is expected in the second half, in shanty towns transformation, the railway investment, urban infrastructure construction, speed up the development of energy conservation and environmental protection industry and the promotion of information consumption etc. , under the drive of domestic steel demand is expected to continue to grow. On the other hand, although a slight drop in crude steel production in June, but serious supply exceeds demand in the domestic market fundamentals have not changed. Steel exports decline trend, the late is still expected to decline trend; Steel society inventory despite months of decline, but the overall level or higher. Seen from the above situation, steel prices have risen sharply in the late, will still be low volatility running situation. Need to focus on the main problems in the late markets, cisa, points out that the current market is still sharp contradiction between supply and demand, the late iron ore prices are still falling space; Iron and steel production enterprises should be targeted to arrange production, optimize the product structure, improve product quality, actively adapt to market changes. Look from the international economic situation, due to the slow recovery of world economy, the United States, Japan and other countries quantitative easing monetary policy, reversed transmission the appreciation of the renminbi, combined with its increasing trade friction, will make China's iron and steel products export difficulty further, later the situation is not optimistic. , according to a report by the end of June, cisa CSPI steel composite price index for 98. 52 points, the decline of 3. 25%, year-on-year for 14. 69%. In the same period, CSPI long products index for 99. 87 points, the decline of 4. 35%, year-on-year for 16. 45%; Plate index for 98. 43 points, the decline of 2. 29%, year-on-year for 13. 03%. In late June, cisa monitoring of eight varieties of steel prices continue to fall, high speed wire rod and rebar drop increased, in addition to other varieties of price decline from the previous month. High speed wire rod, rebar and the Angle steel prices fell 157 yuan/ton, 164 yuan/ton and 159 yuan/ton; Medium plate, hot-rolled coil, plate, cold rolled sheet and galvanized sheet fell 107 yuan/ton, 72 yuan/ton, 145 yuan/ton and 108 yuan/ton; Hot rolled seamless steel pipe prices fell 77 yuan/ton. In the same period, the national main market inventory of 15. 46 million tons of steel society, from the damping is 6. 66%, year-on-year drop is only 0. 52%; Although have continued to fall for three consecutive months, but compared with the start up 30. 17%. In June, imported iron ore price C. I. F. for 126. $80 / ton, decline of 4. Dropped 50%, has for three consecutive months; Domestic iron essence pink, coking coal, metallurgical coke and scrap steel prices dropped for four consecutive months, fell 29 yuan/ton, 90 yuan/ton, 73 yuan/ton, and 38 yuan/ton.