Downturn in the steel industry for many years, in the case of low inventory sudden rebound in demand, the industry is expected, with the improvement in steel orders, the bottom steel prices will continue to be lifted.

　　Yesterday, the United Steel Logistics Committee was published in March steel industry PMI index was 49.7%, 0.7 percentage points last month, picked up four consecutive months of rise, and reached its highest point since May 2014.

　　The main sub-indices, the demand to pick up the most eye-catching. In March, the steel industry new orders index continued to expand last month increased 2.4 percentage points to 53.3%. The index also rose for four consecutive months, and reached its highest point since May 2014, shows the current domestic steel market demand continues to rise, significantly increased the amount of steel orders.

　　Downstream from the consumer market, nowadays when "gold and three silver four" peak season demand for steel, especially in real estate, automobile market to pick up the demand for Steel City pull clear. At the same time, subject to funding constraints and the pressure of debt, iron and steel enterprises to resume production rhythm remains slow. In March, the index of iron and steel industry production rose only slightly in February, compared with 0.3 percentage points to 49.8%.

　　Expansion of demand, but the slow resumption of production, the steel industry stocks fell. Iron and steel industry, finished goods inventory index at the end of last month, down two and even rebound after March once again evident contraction of 37.7%, down 7.1 percentage points from the previous month. The index has 8 consecutive months below 50% of the ups and downs in the line that displays the current steel destocking effect is obvious.

　　The only drawback is, beyond the domestic steel prices rebound in steel prices led to overseas steel prices, resulting in a 10% proportion of steel exports almost in a "frozen" state. In March, the steel industry new export orders index continued to decline 9.3 percentage points to 36.9%, since the nearly 14-month low.

　　Downstream end demand steel market, a look at the railway, a look at real estate. Among them, the January - March housing sales are very popular. March 15 second-tier cities new commercial housing turnover area growth of 160.6 percent, an increase of 96.4%, a record more than five years the highest monthly level; 11 third-tier cities new commercial housing turnover area growth of 44.0%, an increase of 37.1%.

　　Fed to raise interest rates to slow down the rhythm, the dollar fell sharply, pushing commodity prices, but also help steel prices rebound.

　　In addition, mandatory emission reduction measures steelmaker Tangshan Shi important city park operators will cycle past 6 months, the focus of major events during the 33 days taken control period led to reduced production expectations.

　　China Federation of Logistics and Purchasing Steel Logistics Professional Committee believes that domestic steel prices will continue to show post-concussion firmer, easy up than going down the rhythm. With steel operating rates gradually rise, steel exports as well as first-tier cities market regulation from tight supply and demand situation in the latter part of the domestic steel market is likely to be gradual change in steel prices continue to rise will be more limited.