2015 steel market outlook

Under the background of Chinese macro-economic is slowdown and the decline in real estate investment, demand for steel will continue to fall back, while supply in iron ore continuing to increase in 2015, the cost of the collapse of steel prices continue to hit new lows prompted. However, considering the marginal cost of mainstream mine is expected ore price of $ 40-50 for a strong supporting role. We expect the 2015 Mine steel prices will continue to shock hit new lows, iron ore price range of $ 50-85 / ton, the price fluctuation range of thread in 2000-3200 yuan / ton. But it is worth noting that in 2014 steel prices fell during the mine is primarily a price bubble extrusion process, squeeze the bubble process is relatively smooth, prices fell late is a crowded production process. Extrusion production capacity is a slow process, which determines the 2015 Mine steel prices remain bearish direction is great, but it fell during 2014 will not be like so smooth, and gradually close to the bottom as prices, markets are bullish factors, it is easy to rebound, but space is limited. In short, the 2015 Mine steel market is the main tone of shock hit new lows, but increased volatility.