May steel market ups and downs!Another night of fright!U.S. and European stocks tumbled and U.S. bond yields soared after the Federal Reserve released minutes of its April meeting that showed policy easing was less than expected and some officials expected an upcoming meeting to discuss tapering bond purchases.At the same time, the regular session of the United States once again stressed the guarantee of bulk supply, to curb unreasonable price rise, the policy bearish expectations continue to increase.Phase steel diving, days to continue to weaken, spot overall downward, weakness does not change!

Phase steel fell over 200 spot fell across the board

Steel futures plunged sharply, with futures snails down 258 to 5186, futures coils down 260 to 5555, iron ore down 69 to 1142.5, coking coal down 154.5 to 1782.5 and coke down 126 to 2492.5.

Spot side, trading light, merchants continue to cut the price:

According to the data, rebar 24 markets fell 100-390, 20mmHRB400E average price of 5401 yuan/ton, compared with the last trading day down 269 yuan/ton;

Hot coils in 24 markets fell 150-470. The average price of 4.75 hot rolled coil was 5752 yuan/ton, down 371 yuan/ton compared with the last trading day.

Mid-board 24 markets fell 100-460, 14-20mm average price of the mid-board 5906 yuan/ton, down 322 yuan/ton compared with the last trading day.

Policy disturbance market, the increase in bearish expectations

On the one hand, peripheral bearish factors push up.Last night, U.S. stocks tumbled, oil prices fell and Treasury yields soared after the Fed released minutes of its April meeting, which were less dovish than expected and showed that many members expected tapering of bond purchases to be discussed at the upcoming meeting, signaling a tightening of monetary policy.The yield on the 10-year Treasury note rose 3.4 basis points to 1.677 percent, under heavy pressure.

On the other hand, the executive meeting of the State Council once again stressed the need to ensure supply and price stability of bulk commodities, "not only to give play to the decisive role of the market in the allocation of resources to ensure supply and price stability, but also to better play the role of the government to crack down on monopoly and hoarding."

Policy bearish expectations increased, steel night diving, continued to weaken in the day.

Inventories fell another 720,000 tonnes, narrowing the decline

On Friday, stocks of large varieties fell another 720,000 tons, a narrower decline than last week.In terms of varieties, the rebar factory warehouse has increased slightly this week, and the overall apparent demand dropped 830,000 tons compared with last week, which is related to the recent continuous decline in prices and wait-and-see sentiment.

Raw materials weakened by the impact of the decline in timber

Recent lumber prices fell larger, the overall weak end of raw materials.Scrap steel procurement prices continue to decrease.Shagang since May 20 scrap steel prices down 100 yuan/ton, eight rounds of coke rise and fall, due to the contraction of steel margins, the market is expected to squeeze the price of coke, do not rule out will usher in the first round of decline.

To sum up, the policy is expected to increase the overlay of adverse factors in the peripheral market disturbance, period steel plunged, the market bearish mentality is stronger, spot transaction is light, businesses continue to reduce the price of steel is expected to continue to fall tomorrow.