National Bureau of Statistics latest statistics show that in April the domestic crude steel production 65 million 650 thousand tons, an increase of 6.8%; the same month, the country's steel output 87 million 606 thousand tons, an increase of 8.1%. Average daily output of 2 million 188 thousand tons, an increase of 2.3%, second only to 2 million 208 thousand tons in February, a record high.

In 2013 1-4, the country's crude steel output totaled 258 million 152 thousand tons, an increase of 8.4%, steel production of 334 million 262 thousand tons, an increase of 10.5%.

From the above data, the domestic steel production has always been high, and there are still refresh records to become a new high, high yield is still suppressed market prices are difficult to uplink, and the main factors of the decline. According to the understanding of the market, the domestic steel has not been significantly reduced, and because is the peak season, steel mills to increase profit margins continue to actively lead production, steel production bujianfanzeng, while the market price is suppressed constantly vulnerable to fall, to show a rebound season trend, truly validated the busy season of the situation.

The excess production market business confidence, many are not optimistic about the market outlook is expected, another near the South rainy season, the downstream site procurement transactions will slow, weak, inventory consumption more slowly, businesses have to choose the price and quantity to complete sales plan, promote the market to accelerate the decline, this week already reflects the status of operation, but more important is the building space downstream demand again from the bad news.

Recently, the railway project continued to surge in all parts of the country, among them, the highest impact of high-speed rail, due to the railway company's capital pool emergency, so that a number of high-speed iron artery downtime, slowing down or delaying construction. Like a lot of money for this kind of railway fixed assets investment from national financial transfer payment, reduce now is not optimistic about the economy, the central fiscal revenue, the natural effect of the progress of construction, this is the main reason; on the other hand, is the Ministry of Railways after the cancellation of the original investment plan caused interference.

Just need to building space narrowing, steel production remained high, consumption demand is slow, the relationship between supply and demand imbalance is still difficult to restrict the market upward, many dealers said, as long as the steel not control capacity, continue to speed up production, the demand space is difficult to expand, the price is still difficult to climb. Now many mills factory executive price is still high, the market upside down significantly, if not adjusted, dealers long-term upside losses, and there is no guarantee to provoke between steel mills and distributors of gunpowder contradictions, so the bad news is still dominant, businesses for the shipment as soon as possible to support the price stabilization, the market is expected next week is still narrow down 10-50 yuan / ton.