The hottest steel price plummeted and broke throug

Steel prices plummeted, breakdown of cash costs, steel mills shut down for overhaul in a full range

in this summer month with the weakest demand, the steel industry finally began to stop production and overhaul nationwide. Boosted by this news, the steel market mentality improved and began to rise slowly. According to the latest prediction of the Research Institute of the Ministry of industry and information technology, the field of raw material industry is still not optimistic in the second half of the year, and new materials may become the main focus

although it is impossible to accurately estimate the impact on output at present, due to the large number and wide range of steel mills that actively shut down production, it plays an important role in boosting the market mentality that is almost collapsed. As of yesterday, the decline in domestic steel prices has narrowed for three consecutive trading days, and the previously oversold hot-rolled coil prices have rebounded slightly, and the prices of individual varieties in a few markets such as Shanghai and Lecong have increased by yuan/ton

rebar futures also achieved an overall rise in the past three trading days. The thread 1301 contract closed at 3719 yuan/ton yesterday, up 0.16% from the previous trading day. On July 23, thread 1301 hit a two-year low closing price of 694 yuan/ton for both polyurethane (PU) and polystyrene board (EPS, XPS)

iron ore is still making a linkage response to the steel market that has fallen continuously before. According to the latest data provided by TSI, an iron ore index institution, on July 25, the CIF price of the north port of 62% grade fine ore was 118.6 US dollars/ton, down 4.3 US dollars from the previous day, hitting an annual low and the largest decline of the day in the past eight months

the steel industry has become the most "well-known" disaster area. According to the "analysis report on the development situation of China's raw material industry in the second half of 2012" to be released today by CCID Research Institute of the Ministry of industry and information technology, the accumulated profits of key large and medium-sized iron and steel enterprises fell by 97% year-on-year in June this year, and the loss of key large and medium-sized iron and steel enterprises in the same period was 34%; The accumulated losses of loss making enterprises increased 32 times year-on-year

since the current steel price has fallen by more than 20% over the same period last year, and the cash cost has been comprehensively broken down, it is believed that the effect of production suspension and production restriction of steel mills will be gradually reflected in future market transactions. But the long-term downturn makes the market dare not be optimistic. At present, it is the most traditional off-season in the steel industry. After all, what goes beyond the conventional configuration is that the high temperature and rainstorm that need additional money further restrict the downstream demand. Therefore, it remains to be seen how long the rebound can last

new materials became the main focus in the second half of the year

looking forward to the second half of the year, the report believes that the downward inflation and slower growth will lead to further loosening of monetary policy, while the possibility of large-scale "growth maintaining" fiscal stimulus policies will be further reduced, which will accelerate the industrial restructuring of raw materials industry. Among them, the building materials, petrochemical and new materials industries are likely to maintain a relatively good development momentum. The plight of the iron and steel industry will further increase, the non-ferrous industry will continue to differentiate, and the rectification of the rare earth industry will be accelerated

although there is potential demand for affordable housing, railway infrastructure, etc., on the whole, the steel production capacity has expanded too fast this year, and the capacity utilization rate is preliminarily estimated to fall below 80% due to product complaints, environmental problems, and the certification of becoming a qualified supplier. In an interview with this newspaper, yuan kaihong, director of the Institute of raw materials industry of CCID think tank, said that the economic situation continued to weaken, and it was difficult for consumption as a whole to rise significantly, making it difficult to effectively improve the pattern of excess steel supply. Therefore, the fundamental role of the market in allocating resources will be further played, and the pace of industrial transformation and upgrading will be further accelerated

non ferrous metal industry is divided. The report predicts that only copper in the base metal is expected to rebound in demand in the second half of the year, and other varieties are difficult to reverse the decline. As it represents the direction of high added value, energy conservation and environmental protection, the field of new materials represented by small metals is still a consistent development highlight. If we benefit from the development of high-end equipment manufacturing, superhard and high-temperature materials, the demand for tungsten will further increase. The rectification of rare earth industry will also be accelerated again

the report predicts that with the further release of the new material special project of the Ministry of finance, the policies related to new materials will be further implemented, and all regions will vigorously promote the development of local new material industry. In addition, some new material industry alliances may be established, which will accelerate the development of new material industry