Domestic steel prices inversion based on still too far-fetched

At the beginning of June hong kong-listed should belong to the off-season, but after the Dragon Boat Festival, with domestic steel and iron ore prices higher, with steel prices up should be potential, some cities even sealing rised library, greatly exceed market expectations; Rebound in steel prices, however, at the same time, the businessman common feedback end demand remains weak, therefore, the rally was due to steel mills for pull up, draw on the approach to stock. In fact, the decline in steel prices as a whole months, due to the varieties of steel prices fell to a low in recent years, the stock market has a significant decline, under cost constraints, the market most merchants think later continue to fall sharply space is very limited, steel price is in shock at the bottom of the process, the substance may occur at any time. But in the context of the upstream steel mill production, supply pressure has not ease, steel price inversion based on too far-fetched, bottom prices are unsustainable. First of all, up in the air, the contradiction between supply and demand of steel prices low and the Chinese steel industry for inseparable, cisa statistical key enterprises in early June crude steel output for 173. 10000 tons, the ten-day rose 1. 3%. And from the Angle of steel mills, thread, for example, the market prices continue to upside down, although social inventories fell for 13 weeks, this year has reached 7. 84 million tons, but compared to the data from last year is still high; And producer prices for steel mills cut frequently will fall is expected to market, dared ask how can such a supply market make the hong kong-listed reversals? With the advent of summer high temperature days, outdoor engineering inevitably affected, releasing a further slowdown in demand, which could make the continuous decline of social inventory appears repeatedly, can cut their production in place, focus on the government to implement. Secondly, money problems, state-owned Banks and big private Banks for the central economic policy & other; Optimistic misreading & throughout; Lead to careless lending, the bank lending rate hit a high of 15%, while the central bank and the State Council made it clear that not inject liquidity policy & other; Rescue & throughout; , and resolutely implement the interest rate marketization; And June is the assessment of commercial Banks in the second quarter of the point of deposit loan scale, short-term deposits size result in a shortage of capital market is more, the cost of capital rise is inevitable; At the end of June and early July and is the point, the reserve funds payment and financial payment liquidity taking will exacerbate market to a certain extent of shortage of funds, and other Money shortage & throughout; At least to early July. This may cause steel capital of two-way strain; On the one hand, the downstream industry in itself insufficient capacity of drained, Banks reluctant to lend will further restrict the financing of the project schedule, in short order, but no capital turnover; Another aspect is the iron and steel industry within the problems of shortage of funds of enterprises, especially at the end of the steel trade merchants need to steel mills, has the strong drained a stress, the steel price rise. In general, if a country has no significant positive policy implementation, the pattern of the steel industry as a whole to a weak periodic difficult to change, the supply and demand imbalance, profit squeeze, credit pressure and so on will continue to be reversed transmission power mergers, exit of small enterprises, the summer is very cold!