Futures continued to fall - 304 stainless steel belt Tianjin stainless steel co. , LTD

Recently, the domestic steel market prices, dragged down by multiple bad fell sharply, part of the market in a slump state. Since the middle of June, due to the 304 stainless steel belt spot market demand, steel prices decline, the difficulties, lead to traders orders fell sharply, conduction to the steel mill, steel stocks surge, which may lead to a downturn in the procurement of iron ore continued strong iron ore prices turned down, hard to stability. Drive of iron ore, steel futures and futures plunged sharply, at the same time, the stock market slump in continuous also greatly suppressed market optimism, gas market panic atmosphere heavier, businessmen about future common despair, in order to reduce the loss, kill drop sharply. The end demand is very scarce, flange are few, the market into a vicious circle. The supply and demand imbalances. Although June and July gradually into the traditional steel consumption off-season, but demand should be beyond the expectations of the majority of traders, great influence on the speed of inventory. At the same time, the stability of steel mills in order to protect the cash flow, speed up production, but traders because prices losses increase as well as inventory backlog, order and intend to significantly lower speed, steel stocks soared, to an all-time high, cause the overall state of the steel market supply and demand imbalance, forcing mills ex-factory prices continue to fall. 1 - Fixed asset investment, real estate development investment growth in May have continued to fall to a new low for many years, the domestic demand for 304 stainless steel belt formation obviously tired. Investment data that month in May, though slightly improved, insufficiency, the funds invested in new projects growth is slowing, under the situation of the late investment growth is still downward pressure. Currently affected by a wide range of rainfall in east China, south China, the construction site is reduced, increased difficulties of dealers shipped, and money is tight, the afternoon is relatively short, the short-term market demand is still difficult to improve the essence. Under the current situation of contradiction between supply and demand imbalance, the scope of the steel mills cut production overhaul increased, but the overall look at the current majority of steel mills in order to ensure the cash flow and market share, to cut production is still hesitant, cut the scope of maintenance is not large, especially the domestic major iron and steel enterprises in hebei, jiangsu area of steel blast furnace capacity still remain high. Recently the national steel social stock rebounded in a row, there was no signs of slowing market supply pressure. Late as the industry increasing percentage of loss-incurring enterprises, as well as downstream demand remains weak, steel mills production enthusiasm decline gradually, domestic steel production or will fall, the contradiction between supply and demand is expected to be temporary relief. Steel stocks rose to inventory pressure. In June, extremely depressed market demand, steel market prices continue to fall. Tangshan billet fell below their lows hit a low, the price below 1800 yuan/ton. Southern rainy season led to reduced demand, 304 stainless steel futures continued to fall, the spot market generally cautious about future expectations. In order to ensure the cash flow and market share, steel mills cut production maintenance is not large, the range of market supply pressure is still large, full month market decline continued to expand.