Steel industry: Real estate industry is the biggest variable of future demand

The main point of view steel prices this week began to consolidate steel prices, construction steel due to major projects in the amount of direct supply, the market resources are relatively small, and traders are tightening the hand to reduce inventory, to return funds as the main work, the price of the rise of downstream customers is also a kind of inhibition, This week, the pressure on steel prices increased significantly, hot-rolled sheet due to the availability of resources, there has been a decline in prices, and the construction of steel traders in the inventory is currently maintained at a relatively low level, due to the lack of future steel prices continue to increase the confidence of a substantial increase in the hands of traders will not be a large number of inventory,　　So we still insist that this steel price rise is only a short-term oversold rebound, steel prices do not have a substantial rise in a foundation, the situation of the plate will still be worse than the construction of steel. We think the biggest impact on the medium and long term steel prices in the real estate industry, the January-April real Estate sales of the situation is surprisingly good, since May, the enthusiasm of the large property developers have also begun to soar, in the current situation, Whether future developers will be able to put more money into new projects is a major factor in judging the future trend of steel prices, is also the future steel price can stabilize, and even continue to rebound the main impetus, on this issue we will be introduced in the next half of the steel industry investment strategy report to do a more detailed discussion,　　Please pay attention. Steel stock this week, the stock of long lumber and lumber society continues to decline, and the inventory of long materials falls faster.　　According to my steel net to the national key city statistics, this week the National Long Lumber inventory is 4.0141 million tons, the lumber stock quantity is 4.8931 million tons. International markets this week the CRU International Steel Price index remained stable and flat last week.　　Demand in North America remains sluggish and European markets continue to recover. Iron ore this week, the domestic iron ore price shocks consolidation, the northern part of the early rise in the basis of a small downward, domestic mines by the low price of imports of mine impact more serious, the demand is very depressed, in addition to large mines to long-term cooperation in the steel supply, other transactions very few.　　We believe that the recent outcome of the international negotiations on iron ore prices will be settled, so that traders and mines will be the wait-and-see mood would be eliminated, but the future of a large number of concentrated imports of iron ore will be serious consequences, we remain worried about the future of the ore market. Coking coal Coke This week demand is also relatively strong, but prices remain stable. Coke due to the recovery of steel market, some small steel complex production is obvious, the demand for Coke increased, making the recent Coke market sales extremely smooth, and even the region has a shortage situation.