External disk better spot up exploration, steel, ore prices rebound, these signs are changing some domestic steel enterprises want to rely on the idea of deficit cuts to stop.
By policies to stimulate domestic and foreign influence, the domestic steel market recently raised his already low for a year, "head." September 17, more than tons of steel spot market price increase over a hundred yuan, Beijing is close to the market rebar rose 300 yuan / ton. Ore prices also ended the trend of continuous decline of the downturn, which Platts index (62%) September 14 record biggest one-day gain since 2009.
But let domestic steel prices (including steel trading business) disappointment, although steel prices surging, but the market turnover and no obvious signs of heavy volume. "Demand is still very poor, but the end-user stage to replenish stocks, the manufacturing sector, the real estate situation is still bad." Some analysts said.
For those profit margins or even just that they do not lose money in terms of the Chinese steel mills, steel prices rebounded sharply, as they have "the choice of production rather than repair limit production" to find a perfect excuse. "As a policy of the United States QE3, the market price of steel has a significant rise." There are domestic steel trade business people so reflect.
It is understood that since last year's fourth quarter, domestic steel prices continue to decline, although there have been a few times during the rally, but eventually fall due to lack of price support downstream channel. It is noteworthy that, driven by rising prices of steel, iron ore market transaction occurs. Insiders pointed out that the Development and Reform Commission stimulated a large number of infrastructure projects, rapid rebound in prices of related products, including iron ore downstream billet, rebar and other products, affected by iron ore prices have also rebounded trend.
For the latter part of the trend of steel prices, some have suggested, the latter price trend may not be very smooth, there may be phased down, but the overall trend is upward shocks. In fact, the rebound in steel prices can be sustained depends on how long the real needs. With steel prices to stabilize short-term rebound in steel production largely stimulate enthusiasm to further intensify the market supply and demand.
CISA latest Xunbao show in early September CISA member companies crude steel output to 1.565 million tons, the chain increased 2.9% ten days, the national estimate is 1.895 million tons, the chain increased 1.2% late. "Crude steel production rebound, if not timely start downstream demand, market supply and demand may increase. Moreover, the approach of the end of the month and the end of the quarter, the financial pressure on the market will gradually appear." I'm an analytical report said steel mesh.
It is understood that domestic steel prices falling and in July and August decline significantly increased, aggravating losses mills, steel production, limited production phenomenon increased significantly, resulting in crude steel production fell. "In September, steelmakers are likely to fall back into industry-wide losses." Baosteel Group Chairman Xu Lejiang recently told the media said. (Wang Yun)

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Iron ore giants began to "bow"
Iron ore giants began to "bow." Iron ore giant profit plunged so sharply, the world's fourth largest mining company FMG has cash-flow problem, and Chinese steel mills began to "sell" stake "predicament."
According to recent reports, Australia's third-largest miner FortescueMetalsGroup plans its biggest customer China Shanghai Baosteel Group to sell part of the shares to raise funds to weather the storm. By the impact of the international iron ore prices fell sharply, FMG cash-flow problem, the company has temporarily stopped several large-scale iron ore development projects.
Integrated foreign media reported that Baosteel Group will become the strategic investors FMG might be a price of $ 4 per share to buy FMG shares.
Taking into account the recent closing price of the stock FMG is only $ 2.99 per share, if the price of $ 4 per share, according to Baosteel to invest in shares, then the premium rate as high as 34%. The total amount of funds involved in the transaction may be as much as $ 2 billion.
With iron ore prices plummeted, many including three mines including mining profits have shrunk dramatically beginning, in order to ease the pressure even at the reliance on "lower prices" to sell ore to China. Insiders pointed out that if the steel industry continues to worsen, if iron ore prices continue to decline, coupled with foreign mining capacity expansion, will become more apparent oversupply of iron ore, iron ore suppliers late business conditions will continue to deteriorate, by selling "shares "predicament things will increase.