Steel mills do not want to stockpile iron ore prices.

Over the years, the price of iron ore is "easy to rise and difficult to fall". However, due to the recent reluctance of steel mills to hoard mines, the price of coal has changed and "easy to follow up". According to some of the latest domestic market reports, steel mills are reluctant to hoard, steel traders do not want to hoard steel, steel prices and ore prices are "not warm" state, but the excessive increase in steel production is worrying.
According to monitoring, the construction of steel city since April has been reviewed, and the upward trend of 7 weeks has changed. Since the beginning of the month, it has turned weak in the middle of the month. The monthly decline of steel price in some areas is close to 100 yuan per ton. The people in the market reflect that at present, there are two "reservoirs" in the iron and steel industry, and one is the "reservoir" of iron ore and other raw materials. Because of the poor capital strength of the steel mills, the reserves of raw materials are generally lowered, the "intermediate mines" in the steel mills are shrinking, and the other is the "reservoir" of steel. This year, the purchase of steel market is more and more terminal. Spot demand is the main demand, and the "stockpile demand" in the middle is almost extinct, which directly leads to the "peak season" of steel market.
The downward trend of the cost of steel is still a trend in the short term. Since April, domestic iron ore prices have dropped significantly, with a cumulative drop of 60 yuan per ton. The price of steel and steel downstream in the lower reaches, the domestic iron powder resources are relatively sufficient, the panic psychology of the mine shows, and a large number of shipments have resulted in a significant drop in the price of iron ore. At present, the price of domestic ore is still no price advantage than that of imported ore, and the quantity of steel mill procurement is very small. In the first half of April, traders favored low - grade import iron ore market, and the bidding prices of India mines climbed steadily, and the quotations from foreign markets continued to rise. However, in the second half of the month, with the continuous decline of domestic ore prices, the purchase intention of the steel mills on the imported ore was weakened, and traders were also cautious in taking goods, and prices fell again.
In the current steel market, the "intermediate demand" is shrinking, and the "rigid demand" independently supports the release of steel demand, and the previous "amplification effect" has weakened. But on the other hand, steel production is continuously driven by excess capacity and has been running at a high level, making the gap between supply and demand of steel market continuously enlarged. Many people in the industry believe that this is the main contradiction in the late steel market.
Compared with previous years, this year, steel market "to stock" is slower, the current 9 weeks inventory decline is only about 27%, and the last few years after the Spring Festival two months after the stock consumption can reach 40% to 50%, which directly confirms the weakening trend of this year's demand release. According to the statistics, the daily average output of crude steel in March is only lower than that in June 2011, and the daily output of crude steel estimated in the first ten days of April is more than 2 million 18 thousand tons in last ten days of last year in June and set a new high. Although output has dropped slightly in mid April, it is still running at a historical high of more than 2 million tons per day.
Analysts believe that at present, the downstream demand in the steel market is generally adopted "to reduce inventory, that is to buy" operation mode, the market transaction is the embodiment of the real demand. On the surface, it is squeezing the demand space of steel market, but in essence it is squeezing the "bubble and moisture" of steel market. If the late policy is expected to improve and the capital is relatively loose, the steel market in May is expected to rebound in a narrow range. Concussion consolidation is the keynote, and it is difficult to rise or fall with "unilateral market".

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