Chinese steel prices have fallen

Now it is the season to wear thick clothes. Scarlet sweater turned out, down jacket turned out, collar turned out, a lot of clothing inventory, but the grass is always greener is human nature, so a bunch of clothes did not bring me much of a surprise, this feels like the recent [Only admins are allowed to see this link] market, the stock decline in both, but the surprise was general merchants like.

Bad weather, the number of downstream construction will be blocked, the steel market demand will weaken, businesses Dongchu idea and hesitant, in this case, the week before the steel stocks rose for the first time after the National Day, but justone week only, until last weekend, the domestic steel stocks have once again returned to the downstream channel. According to statistics, as of November 23, the social inventory of the country's 26 major markets five varieties of steel (rebar, wire rod, hot rolled coils, [Only admins are allowed to see this link]) to 11.927 million tons, compared with the previous week, dropped by 16.5 tons, total inventory hit the lowest level since December 2009; (November 25, 2011), compared with the same period last year, the total inventory decreased to 1.209 million tons, the first decline in five weeks zoom.

In previous years, this time inventory decline is quite normal, but in the case of steel production to continue to enlarge the market demand and a marked decline in this year, stocks are still down, which was a bit surprised, but has not reached the degree of surprise. Stock decline, which means that the recent merchants who would be no pressure on the stock, this week is the last week of November, slightly ease the pressure on the stock for the toss funding problems, irritability down businesses, can be considered a little comfort, but will not have to do this joy.

We believe that the domestic steel stocks slipped last week, with the iron ore market inventory decline are not unrelated. As far as we know, the domestic steel stocks declined, while last week, iron ore stocks have also experienced a decline, and also has four consecutive weeks of decline. According to statistics, as of November 23, 2012, the 30 major ports in the country's total iron ore stocks at 82.63 million tons, a decrease of 2.68 million tons compared with the previous week, declining for four consecutive weeks. Compared with the same period last year (November 25, 2011), the total inventory reduction of 14.7 million tons, a year-on-year decline to continue to expand. View from iron ore sources, last week, the three major sources of imports for stocks to continue across the board decline in Brazilian ore to reduce still up, a decrease of 1.52 million tons compared with the previous week, a decrease of 40,000 tons and 250,000 tons respectively in Australia and India mine.

With the arrival of winter, the reduced demand for steel, the late steel mills may be forced to cut production behavior, which will directly affect the demand for iron ore. There may be a lot of people think that the steel industry profit margins, steel mills, how willing to cut it, but It is understood that China's iron and steel industry had the most difficult time of the year, the industry as a whole has improved in net investment income and steel Association member companies in mid-October is still a loss, so the steel industry in order to thoroughly losses still very difficult, so even if the steel mills want to continue to increase, attitudes also appear hesitant.

The recent downward pressure of domestic steel prices are increasing, and indirectly led to the price of iron ore are into the downstream channel. Perhaps it was taking into account these factors, a decrease in supply of iron ore, the stock began to slowly decline. On the other hand, the supply and demand pressures, many large enterprises have continued to cut production of behavior, steel procurement is more hesitant, so the whole steel inventory is not a big pressure, not urging businesses to fill inventory, and that makes the recent steel City's stock decline.

On the whole, [Only admins are allowed to see this link] and iron ore stocks tumble, however, for the business, how to open the demand is the real key, the inventory decline of course, will ease the pressure of the business, but the difference in demandbefore, businesses are difficult to real joy.