Domestic market is clearly stronger than steel - stainless steel Tianjin stainless steel co. , LTD

Domestic stainless steel market is clearly stronger than steel, especially imported ore relatively strong, the call for coke price has been high. But as the steel price is marginal cost gradually close to the steel plant, steel plant purchasing motivation, after the second half began weakening raw material market, the billet and scrap steel drop is opposite bigger, imported iron ore and coke prices also become loose at the end of the month. Because of hong kong-listed off-season depressed demand, steel prices also dropped, steel mills cut production maintenance increases, the influence on the price of raw materials, and in fact, the raw materials in addition to iron ore prices are still firm is given priority to, a few small regions fall outside, the rest are sharply, such as scrap steel has dropped below 1100 yuan/ton, people can not help but ask, iron ore is to make a preference? The late prices up is down is it anyway? Personal thought, both national policies and hype to the market price is only for a period of time, unless national major stimulus policies introduced gradually, and the final determinant of supply and demand is the market price. The following me to simple analysis from the aspects of supply and demand of iron ore. Domestic ore market consolidation operation, participate in relatively limited market, clinch a deal remain low. Outside dish market, the recent weakening, lead to steel mills bearish mentality is aggravating; Steel plant overhaul efforts have increased, the market demand began to abate, mining overall shipments, of late market generally pessimistic; Port stocks fall further and futures are still relatively high, trade dealer market mentality differences, low-cost delivery will not, late in long-short compete for market, weak consolidation is expected late market, or have a small drop space. Ore price consolidation in operation in north China, the market clinch a deal the relatively limited, businesses wait-and-see mood even worse. Imported ore market futures fell, the spot market traders offer basically unchanged, the market is active degree is not high. Current spot resources concentrated in the hands of a handful of big traders, has a price point of view, more and more willing to be born in yuan, after the relatively tight inventory more mills can only pick up the goods at the port. Due to the recent time ore prices rose faster, in June of a steel mill ore proportioning, within a reasonable increase occurrence peak domestic ore prices to rise modestly, including xing bureau, the Jin Ling, some domestic large ore price 15 - by 30 yuan/tons, after the late as steel price decline faster, steel procurement product polarity is abate, north China, east China part of the small and medium-sized steel mills purchase price cuts - 10 20 yuan/ton. As can be seen from the ocean freight rose in late June, July, gradually will increase the amount of the arrival of the goods imported iron ore. At the same time, whether loss of production or routine maintenance, domestic steel blast furnace capacity decline in July is a big probability event, the consumption of stainless steel with a corresponding decrease. In the upstream steel production at the same time, the downstream market but are suffering to inventory resistance; Seasonal consumption off-season is coming, and then enter 'plum rains season in June, the rain is more serious interference outdoor project progress, so in June since domestic steel to inventory speed decreases significantly; Late at the same time, due to the agent to see weak demand, order's enthusiasm is lower, while the market appeared many varieties shortage phenomenon, but the steel trade business receiving still cautious, this phenomenon also again businessmen think that the current steel market lacks increases the power, low inventory risk aversion. Steel plant resources difficult. Cisa figures show that as of early June, at the end of the key internal steel mills stock for 1484. Ten-day from 90000 tons, an increase of 67. 740000 tons, or get a 7. 20%. China steel spot network, points out that the stainless steel with internal inventories, explain the cash resources ability is reduced, liquidity is inventory tie up, to bank loans will also have to maintain active production to obtain bank trust. But for months and months of steel export window, is expected in the coming months China's steel exports will remain high, so the practical pressure is not big.