April 24, according to China Steel Association, this year’s overall tone is stable progress, to work is still on the road, infrastructure investment to maintain the growth of the objective facts placed in this, while environmental protection law enforcement efforts continue to strengthen.so steel The market should not appear steel prices cliff-style fall. Steel prices or ups and downs depends on the relationship between supply and demand, steel prices can run in a reasonable range need to maintain together.

Clear the “land of steel” to release a large number of scrap resources, began to flow into the standard enterprises, we recently found in the study of many long process enterprises scrap consumption is a substantial increase in 1.6 tons of iron ore refining 1 ton of iron, scrap The use of large quantities will inevitably inhibit the amount of iron ore.

Scrap recycling point of view: today received tomorrow is down, the price is too frequent, the average every three to five days down once, so that we are now more than 100 yuan per ton loss.

Analysis of the price is too frequent

Analysts point 1: blast furnace is not enough to digest the stock of scrap iron and steel, so the market has been the accumulation of scrap steel situation, the current low price of scrap steel.

Analysts view 2: that is from the market this sales point of view, and not a good demand for steel pulling, the actual situation is lower than the market expected.

Steel point of view: three or four hundred dollars per ton of profits for steel mills are also a reasonable range, but the current iron ore raw materials and steel prices are in decline in the channel, companies can not maintain high raw material inventory, so their plant iron Ore stocks decreased by about 100,000 tons. The current price of iron ore should also have to cut the space, so keep a low inventory, reduce the risk.

Yongan Futures vice president: Our entire macroeconomic or low in the run, we demand side can not have much change, the price from the bear market to the bull market does not have this condition, from the current point of view, steel prices in May and June Bottomed seven or eight months may have a wave of rebound throughout the year is relatively large fluctuations in the volatility.