International iron ore price keeps stable, and iron ore supply capacity is estimated at 1.52 billion tons this year worldwidely, which for the last year is 1.06 billion tons.

China Steel Association: China’s future 100 years will be the largest country for the manufacturing steel products; China’s steel business profit margins are still low; the global steel industry should not blame China for overcapacity. Global iron ore supply capacity is estimated at 1.52 billion tons this year, which for the last year is 1.06 billion tons.

Raw material Steel Billet: On 31th Tangshan billet offered 3130 CNY temporary stably, other markets is going stable. Today, the sales transactions is less. Billet transaction is still weak, steel billet inventory offers 3180 CNY including the tax, but transactions also small.

China Domestic iron ore price reduced but stable

On 31th China domestic mining market going weak, different with the International iron ore price, China price reduced but going stable.

Yesterday China domestic iron ore price reduced 1.15 US dollars, it is a big attack for the buyers and sellers. For the Chinese steel manufacturers, the current price of materials has declined. Compared to the previous month the profits shrunk. Therefore, China steel manufacturers have to reduce the steel price immediately. As inventory is still big at the port, for the factories have nothing to fear.

Mining Companies side, hoping to enhance the price. But affected much by the reduction from the steel factories, even reduced 14 dollars in a few days. The mining companies have to reduce the prices accordingly.

Trading companies fearing that the factory price is higher than the stock price, so they only purchase a few material from the contract with factory. Orders increased slightly, we could assume that the traders buy materials in the bottom of the market, but the market could not give a good support, traders still need to wait for good opportunity. Recently, due to the general downturn of the steel market, foreign mine sells well because of the low price. China domestic iron ore market will keep stable and week in short-term.

International iron ore price keeps stable and cold rolled steel coil price expected to increase

On 31th, imported ore prices and sales keeps stable.

Steel stock

South China Building Materials: Reinforced steel rebar is continuously strong, gives a certain support for the steel inventory.

Central China cold rolled steel coil: Recently price is reduced a lot, traders losses too much. In addition, because China steel manufacturers didn’t give the discount bonus as promised,  some steel trading company have to stop orders with factories or cancel the future orders. Cold rolled steel coil Inventory will be reduced gradually. From the current condition, the market is going into a gambling game, it was considered that the traders will try to increase the market price after the holidays. In a word, the market price of cold rolled steel coil is expected to increase.