Demand for repeated release, import ore prices accelerated decline, cost support weakened, the domestic construction steel market continues to drop. Steel prices fell below after nearly 3 and a half years low, still decline is hard to change.

Steel mills are still bucking the trend

According to the latest market report, Hushang construction steel prices continue to decline.

As of 17, the steel index was quoted at 3590 yuan per ton price, down 50 yuan a week. At present, the Shanghai high quality products three grade rebar represents the specifications of the ton price at around 3500 yuan, down 40 yuan a week; Hushang quality products two grade rebar is quoted at around 3500 yuan per ton, unchanged from last week. The personage inside the market expresses, after the closest one week is in the week, as steel futures drops considerably, add a few area overcast and rainy weather hit again, end user turns to wait and see, steel price also is inferior once more, fall.

The steel mill is down on the factory price, but it is on the rise in output release. After Baosteel, WISCO, Shougang has issued on the June price sheet, hot rolled plates and other mainstream factory price per ton, down 150 to 260 yuan, reflecting plate manufacturers orders has significantly increased the pressure. Construction steel manufacturers of the latest pricing is the following transfer oriented, close to the market pricing of Rizhao, Jiuquan Steel and other steel factory price has been fully revised down.

According to the latest statistics, in April domestic crude steel production increased by 6.8%; the average daily crude steel production was 2 million 188 thousand tons, an increase of 2.3%, the average daily output of a record on the new high level display mills still contrarian increase, the steel market supply and demand has always been difficult to effectively alleviate.

The short-term domestic steel market decline is hard to change

Iron ore market, which has always been strong against the fall, is becoming more and more obvious.

In the domestic ore market, Hebei iron ore prices fell slightly, tons price decline of about 10 yuan. Imported ore prices fell continuously, the 63.5% grade India powder ore quoted at around $127 per ton, down $5.25 a week; Platts 62% grade iron ore index was 125.5 U.S. dollars per ton, down 5.5 U.S. dollars a week.

People in the city said that the continued slump in steel consumption in Europe and the United States, weak local iron and steel production, led to weak demand for imports of ore, so that the amount of foreign ore sent to China is increasing, the transaction price continued to decline. The current import ore prices have hit a new low this year, most of the market participants are still not optimistic about the trend of the late mining market.

Relevant institutions analysts said the possibility of significant growth and little late steel end demand, steel has no clear signs of decline, steel factory pricing is facing greater downward pressure, estimated as spot steel prices fell further open space. In the short term, the downward pattern of domestic steel market is difficult to change.