Since this year, the mine has experienced two rounds down, overall showed a trend of decline. Compared with the corresponding port is sustained over one hundred million tons of iron ore, ore to financing factors, a large number of steel mills are still up goods, port iron ore Shi Chong high. As a result, the ore prices, L290 pipeline tube factory direct losses, if steel prices fell by a bigger, its profit space still will not bring more favorable for ore prices. Steel procurement of iron ore in future policy more so or because of the excess supply of iron ore and steel demand slowdown, procurement process can shorten constantly, or there will be big shift increases with the increasing production of purchasing.

Domestic steel industry is typical of severe overcapacity industry, return on sales fell sharply. Overcapacity is essentially the result of market distortions. Governance capacity, the key is to "twist twist is".

Overall, the boom of manufacturing rebound, micro stimulus policies continue to power all gives the market must have confidence, steel prices continue to fall the power is not strong. Crude steel production has now in the peak of the year, the late rise space is limited. However, hong kong-listed demand recovery remains slow, especially construction in steel demand has improved. Ore prices are still weak part at the same time, steel costs continue to move down, construction steel prices in the short term or shock, part of the market, the shortage of some specifications exist periodic rebound in demand. Ore prices fall, is a domestic economic slowdown, the real estate downturn, such as weak downstream demand, L290 pipeline tube high inventory, as well as overseas mining expansion, etc. The second is influenced by financing selling mine. Since this year, from the China banking regulatory commission baseline iron ore for the financing risk, some domestic Banks have been asked to traders in July increased to 30% ~ 50% deposit, l/c to the port financing ore sell-off has increased the price downward pressure.

From national regulators, are feeling hidden trouble to the bank and after movement, latest action, it is reported that began last week, Qingdao port for commodities illegal financing has carried on the inspection, the survey must be financing have an impact for iron ore, if the western Banks to stop to provide financing for China import iron ore, the originally weak demand in the domestic market, will be hit, iron ore prospects look more pale, the ore price or downward. Iron ore supply outstrips supply, steel mills to believe that the iron ore price rebound is unlikely, reportedly steel companies are going to cancel the long-term supply contracts and, in turn, lower purchase price of iron ore spot. Learn from the Australian miners, however, so far no customer cancel the order, heard of cancel the order. Steel mills to buy iron ore, iron ore price index based on the current period are those cargo to determine (see month average value, etc.), on the spot down cases, steel mills to buy spot can better control principal, profit space. Rumor mills cancel the order, is based on the present situation of the iron ore supply exceeds demand at present stage, and the future iron ore prices to consider. Steel mills to control interest this, buy less than iron ore, in there is no influence production situation, short-term supply steel mills for iron ore, L290 pipeline tube will become the new change in procurement.