China's steel price is hard to fall in the second half of the year

Originally, under the interference of trade problems in the United States, the global economic growth rate is declining. In this case, the price of steel market should not be stronger. However, due to the excessive speculation of international iron ore price, the price of steel market has been promoted, which makes it difficult for steel price to fall for a while.

At present, the global steel output is 1.8 billion tons, of which China's output is nearly 930 million tons, accounting for more than half of the world. 90% of the iron ore consumption in China's iron and steel mills is imported, so the fluctuation of China's steel price is closely related to the fluctuation of international iron ore price.

In June 2019, the total decline of social stocks of steel products of five categories in 20 cities in China was narrower than that in the previous year. In June, the total inventory was 12.19 million tons, a decrease of 510,000 tons annually, a decrease of 4.0%. Among them, the total inventory of steel market was 11.31 million tons, a decrease of 460,000 tons annually, a decrease of 3.9%. The port inventory was 880,000 tons, a decrease of 50,000 tons annually, a decrease of 5.2%. The  decline in steel inventories in June also shows that steel price is not easy to fall.