Price will be strong, relatively strong steel prices

The last week of July, steel prices continued to rise, phase steel afternoon or narrow, the spot price part with inflation, but affected by heavy rains and typhoon "fireworks", the downstream procurement is still cautious, clinch a deal the whole impeded, market feedback part of the building materials variety is out of stock, stacking limit production production expected, businessman's price will strong, steel price is relatively strong.

Let's take a look at today's quotation:

Iron ore rose 10 to 1136.5, coke rose 93 to 2867.5, coking coal rose 56 to 2153.5.

Spot, the market transaction is still not free by the impact of heavy rain in many places, but with the production limit and steel continue to close up, most of the merchants quote:

Rebar 24 markets in 22 markets rose 20-100, 20mm HRB400E average price 5400 yuan/ton, up 81 yuan/ton compared with the last trading day;

Hot coil 24 markets in 23 markets rose 10-80, 4.75 hot rolled coil average price 5840 yuan/ton, compared with the last trading day up 45 yuan/ton;

Medium board 24 markets in 18 markets rose 10-80, 14-20mm general medium board average price of 5699 yuan/ton, up 36 yuan/ton compared with the last trading day.

August will welcome special bond issuance peak good infrastructure investment

Special bond issuance accelerated in the third quarter, from the current scale of the provinces and cities, the most issued in August, the new special bond is planned to add 569.6 billion yuan, is expected to accelerate the phased investment in infrastructure projects, at the same time, all regions to strive for the economic goals in the second half of the year, will strengthen the expansion of domestic demand, good for the release of steel demand in the future.

Many provinces deployed in the second half of the production reduction work

Recently, Anhui, Gansu, Jiangsu, Shandong and other provinces to accelerate the deployment of crude steel production limit production reduction in the second half of the work, steel production provinces have been formulated to reduce crude steel output in the second half of the plan, some steel mills have received task indicators, the future is expected to further refine production limit, production reduction policy.And recently the Ministry of Ecology and Environment to carry out the second round of inspection work, strict control of the "two high" project blindly and to reduce capacity "look back", increase the market for the second half of the steel production limit, production reduction expectations, steel price support is strong.

Typhoon "fireworks" continued to affect eastern China and other regional market demand

Thunderstorms and heavy rain in north China's recent hard-hit, typhoon "fireworks" at the same time continue to affect east west, eastern Inner Mongolia, heilongjiang and other regions, the China Meteorological Administration improve emergency response for the secondary, typhoon in zhejiang, Shanghai, anhui, jiangsu, fujian and other provinces will be affected, the downstream demand short-term hard to have improved markedly, steel prices upward still blocked.

Excavator sales fell 3.19 per cent year on year in July

As a barometer of infrastructure investment, excavator sales continue to fall. According to CME forecast, excavator sales (including exports) in July is about 18,500 units, the year-on-year growth rate decreased by about 3.19%, among which, the Chinese market is estimated to sell 13,000 units, the growth rate decreased by about 20.01.Also reflects the current infrastructure investment projects to drive still slow.

To sum up, steel prices at the end of the month is still strong, despite the impact of heavy rain downstream demand, but the current production restrictions and strict boost market bullish sentiment, steel continued to close up, spot with the majority of the rise, steel price strong will, incomplete statistics 25 price steel all up 20-300, steel prices are expected to rise in stability, within 50 range.