Downturn is understandable - stainless steel belt Tianjin stainless steel co. , LTD

The author thinks that, at present only through market reversed transmission mechanism to promote industry reshuffle, and eventually to the result of production capacity, and in the process, the inevitable falling steel prices, steel mills profit deterioration of the situation, so the downturn phase stainless steel belt is understandable.
from national regulators, are feeling hidden trouble to the bank after the movement, the recent iron ore port about action, it is reported that began last week, Qingdao port for commodities illegal financing has carried on the inspection, the survey must be financing have an impact for iron ore, if the western Banks to stop to provide financing for China import iron ore, the originally weak demand in the domestic market, will be hit, iron ore prospects look more pale, the ore price or downward. Domestic economy continues to weaken, a significant decline in growth in investment and real estate industry adjustment, under the situation of hong kong-listed needs improvement is limited, compared with last year is still poor. The government made it clear and will not be issued strong stimulus, and to be proceeded by micro stimulus control. June in east China will usher in the meiyu season, high temperature end demand will be transferred to the traditional off-season.
since this year, the news about steel industry funds nervous, cash-strapped become the 'obstacle' of steel prices rebound. Due to the commercial bank credit tightening steel serious overcapacity industries, combined with its own operating pressure, steel production enterprises dare not easily, or face bank debt woes. Money problems at the same time, the steel industry chain upstream transmission step by step. In both at the end of the second quarter and half at the end of June, stainless steel with the market's worries about the tension on the financing side again to upgrade. The macro economy in transition, the callback risk faced by real estate, massive stimulus policies is unlikely. Slack season in May and June off-season gradually approaching, industry fundamentals have improved hard, steel prices are still falling, industry or the loss of pressure increase. In may of 2014 steel raw material inventory PMI index fell back, hong kong-listed tight finances, highlighted steel companies selling pressure, raw material procurement cautious. Steel finished goods stock index continues to rise, may stay in extended range, according to the steel stock will continue to high, steel inventory pressure. This data is a blow to the hong kong-listed start in June. To have the confidence to push the business mentality,, to be conservative, a wait-and-see mode. But, from 4, steel price trend, the market is not consistent pessimistic, also have in prices. Its main performance sheet in class, is also the hot-rolled prices falling embarrassment, the first breakthrough tentatively to rise. Statistical data from the market, social inventory falling for 13 weeks, hot-rolled prices appear strong momentum is not buck the trend line. Light warehouse operation has been a steel trade, business can survive one of the best operating mode in our steel, as long as the stainless steel with a slight change of the environment, because of the inventory pressure is not big, pricing at any time is the norm. However because of money pressure, this pricing flexibility frequency are restricted in the short term. Of course is also restricted by the cost.