In June the whole, supply pressure is difficult to reduce significantly. In addition, we a line of field survey data, according to a recent industry timber demand is significant, petroleum drill pipe is in short order on the situation; And money is tight, building material subject to site construction progress is relatively slow, overall demand trend is significant to the off-season. Steel social inventory decline this year is the highest in recent years in the same period. Especially with sunshine, shagang, tong steel, shougang, such as drill pipe inspection end, increase rate of hot roll will outweigh the rebar.

Recently, the main raw material is still mainly fall, light volume. In addition, the historical data show that 4, 5, and 6 month high production are usually years for three months. Overall, the privately operated small and medium-sized mines has been basically be squeezed out, the late iron ore market is facing private big foreign non-mainstream mining area and the competition between extrusion. Now focus on crude steel mills, average daily output has fallen for two consecutive ten-day but one line from our research results, because the recent yield profit still exist, oil pipe and no significant production plan. Social inventory continues to decline, in the process of fall in steel prices must support, this is also the important reason for the recent steel price decline. From our field investigation results, this year oil drill pipe tends to reduce the price to inventory management, therefore, whether it's raw material inventory is still become useful inventory, pressure is not large. 62% as of June 11, platts iron ore grade index of 93.25 dollars/tons, weeks rose 1.91% month-on-month, but did not flush port spot ore prices corresponding fluctuation, petroleum drill pipe is given priority to with regular inventory, only chase after go up will is not strong.

Supply pressure is still large

From the demand side, we monitor terminal data continuous decline in recent purchase quantity.