There are many overlapping reasons for today's sharp fall in futures and spot, but to some extent, a decline and a bottoming rebound should also be considered as the natural law or general trend of the market. Therefore, in this essay, I can not assure you how the market will rebound from this time. I just want to say to you: today's snail rebound is not without reason, it is not a loophole in the market, but the market. Necessity of natural behavior and market rules. As an ordinary steel enterprise, I sincerely hope that China's steel market can get rid of the current bleak situation as soon as possible, so that steel mills are better, traders are better, and the market is better. Although economic performance continues to hover above the glory line, overall demand remains weak, which is the most important factor in such a heavy decline in the steel market. The sub-index shows that the company's sales declined and downstream orders continued to shrink. Steel trading enterprises lack confidence in the market prospects and weak purchasing intentions, indicating that the market demand for steel circulation will decline in July. In addition to the fatigue of manufacturing data, the overall demand for high temperature and Meiyu in the off-season market is also more difficult. The relationship between steel traders in different regions is not smooth, the number of orders from traders is reduced, and the order level of seamless steel tube enterprises is limited. Although losses have gradually increased, iron and steel enterprises are still maintaining loans, most of which still maintain normal production, which also causes the steel market in a vicious circle of extreme tragedy.
Although the world economic recovery has not changed so far, especially the relatively strong recovery in the United States and moderate growth in Japan, India's economic growth rate may exceed 7%, making it the fastest growing country in the global economy in 2015. However, the global economic recovery remains difficult and weak due to the lack of a strong demand engine. To this end, the World Bank and the International Monetary Fund again reduced the global economic growth rate in 2015 to 2.8% and 3.3% in early June. If Greece withdraws from the euro zone at this time, it will inevitably lead to a major impact on global financial markets and a heavy blow to the already fragile process of world economic recovery. In this case, the international market demand will be weakened, which will make the external environment of China's steel exports more severe. As a result, commodity prices, including iron ore, have fallen sharply in the near future. On this point of action, I think what the market lacks is not only a good driving force, but also how to calm and recover pessimistic fears. However, with the rapid decline of finished steel prices, the prices of imported ores and domestic mines have also fallen sharply recently, which has become another strong pressure of market weakness.