The biggest problem that has plagued the steel industry and the steel market since the beginning of this year is the decline in demand, while the supply does not decrease. If the steel mills do not reduce production, the prices of coking coal, coke and iron ore, the raw materials of steel, remain high, and the prices of steel remain high. Traders and downstream steel-using companies were all respondents.
On Monday, the China Index Research Institute released the latest domestic real estate transaction data. The transaction volume in first-tier cities in July fell by 5.9% compared with the same period last year, of which Beijing saw the largest drop of 46%; second-tier cities fell by 44.7% compared with the same period last year, of which Qingdao saw the largest drop of 68.9%; third-tier cities fell by 62.2% compared with the same period last year , of which Lianyungang had the largest drop of 59.8%.
Looking at the data above, what do you think? Our first reaction is that this year's steel demand will drop significantly compared with last year, and the increase in infrastructure steel will not be enough to make up for the lack of real estate steel. Today, a steel trader said that although the transaction volume has increased in the last week, most of them are due to the normal replenishment of the construction site. The main reason for the price increase is that some varieties of rebar are out of stock.
Although it is said that the "Golden Nine Silver Ten" peak season is coming, the basis for the rise in steel prices in August and September is not solid, and the gradual decline in the demand for steel will limit the rebound height of steel prices, and the number of electric furnace steelmaking plants that have resumed production is gradually increasing. , The day when the supply of construction steel such as rebar in the steel market increases, will be the end of the rebound in steel prices.
