Raw materials: rebar prices slow cattle should be treated -

Liangmao futures news that, after more than a week after of oscillation adjustment, and rebar prices continue to maintain moderate rise, though failing to break through the highs of the early, but the oscillation maintained the validity of upward path. In the short term, traders are eager to increase emotional strong, release is also out for a moment and consumer demand, steel prices rose also takes time.

Relax and create liquidity rose environment

Since December last year after the Central Bank lowered the reserve ratio for the first time, started moving toward easing domestic monetary policy. Although the Central Bank did not like before and after the spring festival market expected a further cut deposit rates, but the Central Bank's commercial release and open market operations aggressively releasing liquidity to the markets. The short-term local currency policy fine-tuning is necessarily limited, China's foreign exchange accounted for the downward trend evident, central banks need to relax monetary policy in itself. According to the statistical data in the new route in the West, large commercial acceptance Bill in early December last year Shanghai discount rate was 10.55 per thousand/month, and by January 2012, the discount rate dropped to 9.1 per thousand per month. Commercial acceptance Bill discount rate's decline showed that tensions were gradually easing of liquidity on the market today. You should expect in the coming months the Central Bank lowered the reserve ratio is a big possibility for the second time, liquidity is undergoing a process of quantitative change to qualitative change. To inject vitality into the economy while also driving consumer demand for commodities, commodity markets trend up. China's iron and steel enterprises network

Supply pressure smaller inventory increases faster

Three or four quarters of domestic steel mills last year as steel prices fell wounded and forced to cut cost price, continues to change until the end. West new route data shows December 2011 produced 52.16 million tons of crude steel, 2.277 million tons more than in November, the chain shows a 4.56%, but is still at a low point for the year, but December's increase reversed the trend of sharp cuts in a row after September. Judging from the domestic crude steel production, crude steel production was 1.6725 million tons in late January 2012, and compared to November last year ton average daily production increased slightly, but still at a relatively low level. It would appear that the current steel market supply pressures are modest, but with the slow lifting of steel prices, levels of crude steel production will rise, supply side pressures will gradually increase in the future. China's iron and steel enterprises network

Compared to steel production capacity adjustment, faster inventory adjustments of market traders. West this new route of data displayed, from last year December end of, thread steel of social inventory began increased, and in January appears has quickly rose of momentum, rose speed of fast let people surprised, and over domestic crude steel output still in more low, therefore cannot will social inventory of increased simple to comes down for Mills arrival volume rose, more to should understood for steel trade commercial market active. This mainly in the context changed from tight to loose liquidity, market for 2012, increased demand for steel consumption is expected to strengthen. From the above analysis, although steel supply pressure will gradually increase in the future, but supported by liquidity and bullish expectations, steel traders increased inventory consumption and mitigate the direct impact of increased production to consumption.

Wait for consumer demand to release

The short term, ahead of Spring Festival in 2012 than in previous years, so after the temperature is still low, North of the construction site started slowly affecting the sales of threaded steel. Long term, construction land and affordable housing funding in place might be 2012 threaded steel demand support. In addition, the persistent strengthening of the Central 1th, in early construction of irrigation and water conservancy facilities, this will also increase the demand for construction steel. China's iron and steel enterprises network

Steel supply pressure increase is not obvious and steel traders library capacity increase of cases, future releases will be consumer demand for rebar driven steel prices gradually upward, rebar prices slow cattle should be treated.