China Steel in 2013

In view of the above analysis, China steel market can usher in growth, supply and demand in the degree of development remains to be seen. Short term, with the weather gradually gets warmer, the demand for slow release in early April will usher in a wave within a narrow range rebound, but the magnitude will remain limited, and in late still need to pay close attention to the latest trends of the market regulation. New "urbanization" policy, as China's economic growth momentum in the next decade, yet it remains on a conceptual level, only to various rules, the planning and the gradual introduction of the Steel City real good, in addition to all around the island announced details of the five countries bearish steel City, may still lead to early April to pick up market push.

Inventory, with the continuous release of the production capacity of China's iron and steel industry, the history of the highest point of the steel inventories continue to be refreshed, and the stock lowest point is gradually climbing, especially experienced for a long time or later in the macro side early positive superimposed boosted, inventory since 2009, the most visible and lasting rise, as of March 29, according to the statistics: Shanghai rebar inventory of 440,400 tons, an increase of 0.94%, a decrease of 0.3% last week; 485,000 tons Guang zhou MoM decrease of 7.62%, a decrease of 2.05% last week; 937,800 tons Beijing, a decrease of 2.4%, an increase of 1.67 percent last week; wire stock of 66,000 tons, an increase of 0.92% from last week, an increase of 4.64%; 478,000 tons Guang zhou MoM decrease of 11.32%, an increase of 0.56% last week; 92,500 tons Beijing, a decrease of 7.04%, an increase of 1.12% last week.

From sheet plate， as of last week, the domestic steel inventories finally emerged decline, but the plate decline rate has been relatively limited. Hot rolled coil and cold rolled coils inventory reduction of 3.9 million tons and 1.5 million tons respectively over the previous week; inventory of hot rolled coil, Wuxi market reduced by more than 3 million tons, is to reduce the most obvious market. The Tianjin market stocks also fell more than 10 thousand tons; Shanghai and Shenyang market increase of more than 10,000 tons. Little change over the stock market of cold rolled coils. This shows that the downstream industry demand is not great on the plate.

The demand side, while social stock rising demand for the release, but it falls short. Since March, the terminal site gradually return to work, steel demand release, but still significantly limited compared with a high level of inventory, the market destocking willingness markedly effective urgent. Macroeconomic data from February, however, the domestic economy is bottoming out and steady growth trend has not changed, but is still in the running state of sub-health and stable price policy of the central bank and the new "the country five" extremely rules promulgatedunder, the downturn in the steel city, once again increasing the pressure.

Overall, construction steel prices north and south of quite different, North China needs better rebounded pileare offer, the southern region due to continued sluggish demand continues to shock fall; and steel plate, hot-rolled steel market continued to fall, the market traded at its lowest ebb, cold rolled coils stabilize, plate steel steady downward. According to market monitoring: As of closing, 25mm two threaded average price of 3,654 yuan, more than last week, down 32 yuan; 25mm three threaded an average price of 3,703 yuan, down 30 yuan; 6.5mm high line price of 3647 yuan, down 82 yuan ; 5.5mm hot-rolled average price of 3,845 yuan, down 96 yuan; 1.0mm cold-rolled average price of 4,886 yuan, up 2 million; 20mm plate average price of 3,843 yuan, or 24 yuan.