In recent months, China's crude steel production is extremely unstable, the willingness of large steel mills to reduce production is weak, by mid-June when crude steel production has begun to rise, and June coincides with high rainy sales off-season, the contradiction between supply and demand in the steel market may be gradually intensified. At present, there is no sign of rebound in steel prices, manufacturing slowdown, downstream demand there is a further slowdown trend, domestic steel traders are generally more vigilant. Steel charges are accompanied by weak steel prices, and cost is lacking in strong support. From the point of view of iron ore, although the price of imported iron ore has rebounded slightly in recent months, but in the medium and long term, the probability of mineral prices falling is still high. With the loosening of the ore market, the sources of China's imports of minerals are gradually diversified. The imports of non-three major mainstream minerals are increasing, and the monopoly of the ore market is declining. As a result, the prices are bound to compete and it is difficult to maintain high prices.

　　Domestic steel prices are weak, major steel mills have reduced ore stocks, so the domestic port iron ore has been at a high level, short-term ore prices also have a need to reduce. Starting in mid-March, steel stocks in key cities across the country began to enter the depot channel. By the end of last week, rebar stocks in key cities had declined for 16 consecutive weeks, totaling 1.8 million tons of digested rebar. However, hot coil stocks increased for two consecutive weeks after 16 weeks of depot, following the interruption of hot coil depot, last week Wire stock also ended a 15 consecutive week of downward trend, a slight increase. Usually into July and August, affected by weather factors, such as rainfall in the South and high temperatures in the north, the downstream real estate industry construction progress will be affected to a certain extent, there will be signs of slowdown, is expected to rebar stocks in the later period will not fall but rise.

　　At present, the supply of output is still excessive, and products continue to be put into the domestic market background, the end of the de-inventory process will lead to an increase in inventory, thus suppressing steel prices upward space. However, for the iron and steel industry, the weak decline in the industrial economy, making continuous high-yield steel is difficult to be consumed in time. High capacity, high inventory, low demand three party backlog, steel price loose space is limited. The key is still the control of production capacity and structural adjustment, only from the iron and steel industry itself began to rectify, it is possible to start facing the direction of reversal. At present, in the period of serious overcapacity, steel demand is far from keeping up with supply. It is not easy to ease the pressure of supply and demand in the short term.