BEBON steel market outlook

BEBON steel market outlook

Macro hot spot
1, Statistics Bureau: 1-6 months, the national industrial enterprises above Designated Size realized a total profit of 3 trillion and 633 billion 750 million Yuan, an increase of 22%, the growth rate slowed by 0.7 percentage points over 1-5 months. In June, the above scale industrial enterprises realized a total profit of 727 billion 780 million Yuan, an increase of 19.1%, the growth rate of 2.4 percentage points higher than in May.
2, economic information daily: following a small area to reduce the discount, increase Shoufu ratio, comprehensive housing and recognize loans, mortgages and then greet the fourth tightening. The current hot cities are fully into the mortgage low discount, or even zero discount era. 360 financial data show that in June the first suite average interest rate of 4.89%, the benchmark interest rate of 0.3% off, rose 3.38%; including over 80% bank interest rates, 32 banks to perform the benchmark interest rate, the benchmark interest rate for 1.05-1.2 times.
3, China Steel Association: July 2017, 20 cities nationwide 5 varieties of steel, social inventories total 5 consecutive months showed a downward trend, the total amount of 8 million 300 thousand tons, a decrease of 540 thousand tons, down 6.1%.
 
Raw material
Domestic ore: 28, the domestic ore market, the main stable operation. Yesterday, general refers to down 0.65 U. S. dollars; the market traded slightly general, businesses wait-and-see at this stage. Steel prices because ore procurement ratio rose slightly smaller, so for the mine approval is low, but due to the current profits, excessive repression, fear of causing the opposite effect, steady rise or small is normal. Mining enterprises, foreign iron ore prices overall stronger, even iron upward shocks in the situation is not broken, some areas have generally bullish mentality, sell very price phenomenon, ore prices overall price tends to be strong. Traders still follow the tide, have enough profit margins, just entering the market, a small amount of operation. Port iron ore inventory risk has normalized, but billet new high prices emerge in endlessly, good digestion, is expected in the short term domestic ore market steady strong operation.
Imported ore: 28, imports of ore, port, spot, offer, confusion, ups and downs, mutual stability. Last night, Pu point down 0.65 U. S. dollars, now 62% Australian powder index 69.65 U. S. dollars / ton, lump ore premium 0.2210. Even iron night plate rebound, but the overall market is not good, the forward spot, the ore business plate active willingness to ship high, but the mills inquiry is relatively cool, individual steel mills to find the mainstream drift, the intention of the settlement. In August, the whole powder PB reported August index +1.6; September, the whole powder PB reported September index +1.6; September PB powder plus block reported September index +1.1; at present, August resources are still mainstream, September outflow of less than the offer. Port spot, miners asking price firm, but not much profit margins. But steel mills said that at this stage straddle factors staggered, on-demand procurement based, dare not rush batch replenishment. From the port inventory structure analysis, high quality powder block stock decline faster to form favorable, and yesterday, the East China Sea naval fleet exercises, from July 27th 8 to 29, 18 issued a ban on air navigation, the volume of Hong Kong or affected. Mine, Vale announced in the two quarter, the second quarter of 2017 iron ore production 91 million 849 thousand tons, an increase of 5 million 651 thousand tons, an increase of 5 million 26 thousand tons; iron ore sales of 69 million 259 thousand tons, an increase of 3 million 941 thousand tons, down 3 million 824 thousand tons. Production has increased, sales have declined, and mines are under pressure from stocks. In short, ore criticism in terms of supply and inventory, individuals see the end of the three quarter to the four quarter, there is a larger inventory risk.
 
Henan Bebon Iron& Steel Co., Ltd was found in 2000.BEBON gradually formed four major advantageous products: steel plate, steel pipe, stainless steel, special steel, and established our own machining processing center in order to meet customer’s diverse requirements. If you want to know more information about the steel, please focus on our BEBON STEEL latest developments. BBN Steel always uphold the purpose of mutual benefit, we always provide preferential prices and comprehensive services.