1. Crude steel output slightly rebounded in August Supply pressure will increase 

On the supply side, in early and middle July 2014, steel association estimates in average crude steel production is about 1.811 million tons of iron and steel enterprise,a key iron and steel enterprise average crude steel production in June 1.8158 million tons 04800 tons. According to the steel supply forecasting model as a rough estimate, in July 70 million tons of crude steel production is expected to a slight decline in crude steel nissan; Preliminary estimates August crude steel and nissan is expected to rebound slightly, supply pressure will increase.

2. Ore price lows Steel cost support increases

In terms of cost of steel support, according to statistics, as of July 30, import ore prices low levels, among them, 58 Australian fine of $91 / ton, a rise of $1 per ton in the end of last month; 61.5 Australian fine of $104 / ton, a rise of $2 per ton in the late last month; Australia piece of $62 and $118 / ton, a rise of 3 dollars/tons, in the last weekend is influenced by steel raw materials iron ore prices to rebound by the end of July, steel support efforts to strengthen cost, steel price decline eased. Integrated the above situation, in August, although steel supply pressure increased, but the recovery in the downstream of the steel demand, steel support efforts to strengthen cost, overall judgment of steel prices will be volatile trending up in August.