Global iron ore is forming a new pattern of "strong supply and weak demand"
The continuous “strong supply and weak demand” of the global iron ore market has caused the price of ore to drop to its lowest point in five years. At present, there is no sign of a rebound. The domestic steel market also has poor shipments, and traders can only "exchange price for volume", and the decline in steel prices has expanded.
According to the latest market report provided by the well-known domestic steel information organization "My Steel", in the past week, the domestic spot steel price composite index continued to decline weakly, closing at 115.98 points, down 1.07% over the week. The steel futures market was “stopping up and down”, causing the mentality of the spot steel market traders to be pessimistic, coupled with poor shipments, the spot steel prices continued to fall in a general downward channel, and the decline in the prices of major steel products increased. As long as downstream terminal demand is difficult to pick up and the market fundamentals cannot be improved, this trend in steel prices is unavoidable.
According to analysis, in the construction steel market, the price decline is expanding. The price of ton in Shanghai, Hangzhou and other places has fallen by more than 100 yuan a week. People in the market said that in the early part of the East China market, due to the rainy weather, demand continued to weaken and prices fell. In addition, near the end of the month, some merchants had relatively tight funds. Low-price promotions in order to speed up the withdrawal of funds led to further price declines.
In the plate market, prices have continued to fall. The hot-rolled coil market has weakened, and the weekly price of tonnage in Shanghai and Hangzhou has dropped by more than 100 yuan. Confidence in the market is further frustrated, and transactions are not smooth. Even if the pressure on overall inventory is not too great, the weak market tone is difficult to change. The plate market is weakly consolidating. Ton prices in Shanghai, Jinan and other places fell by 20 yuan to 80 yuan a week, and markets in Beijing and Taiyuan fell 90 yuan to 100 yuan. Until now, there has been no clear sign of demand from the steel market.
The global iron ore market is further consolidating its new pattern of "strong supply and weak demand". According to the latest report from the "Xiben Shinkansen", in the domestic ore market for most of August, although the price of iron concentrate in Hebei has generally stabilized, it has begun to decline in the second half of the year. It is estimated that the downward trend is "unstoppable". . Under the influence of the expected deterioration of the market and the weak transaction, the prices of imported ore dropped sharply, and the market was bearish. On August 28, the Platts 62% iron ore index closed at a price of $ 87.25 per ton, and fell by $ 8 in one month, a new low since the second half of 2009. According to relevant estimates, in the first half of the year, the domestic iron ore supply exceeded the demand by 52 million tons for comprehensive domestic and imported ore. Oversupply has become the main cause of the continued decline in imported ore prices.
Analysts of relevant institutions believe that it is a bit gratifying. According to the latest data from the China Iron and Steel Association, the fixed asset investment completed by the domestic steel industry in the first half of the year fell by more than 7% year-on-year. The disorderly expansion of the steel industry has eased. However, the direct reality is that in mid-August the daily output of crude steel from key steel companies still rose month-on-month, the supply of steel remained high, and market transactions were sluggish, and it became inevitable that steel prices continued to run weakly.