After a brief weekend ready, construction steel prices to regain their national rally. Yesterday, the Shaoguan Iron and Steel, Laiwu Steel, E Steel, announced a number of steel to further improve some of the ex-factory price of steel products, which resulted in the spot market around the steel structure .

Echoed with the spot market, the Shanghai Futures Exchange, rebar, wire together stronger futures contracts yesterday. Among them, the wire 0909 contract closed at the main 3825 yuan / ton, a record since the contract listed on a new high.

The industry that have raised domestic steel product prices, as well as the Chinese iron ore negotiations in an unfavorable situation, the steel is again strong support for two major reasons.

Spot price of construction steel rose

According to "House Gang" Web site statistics show that 28 major cities nationwide construction steel prices普涨yesterday. The average price for HRB400 rebar 3967 yuan / ton (solid weight), up 36 yuan last five / tons. Price Magang in Shanghai 3830 yuan / ton (PolyU), and last five rose 80 yuan / ton; Guangzhou Price GISE 4130 yuan / ton (solid weight), up 100 yuan last five / ton; in Beijing Area Shougang bid 3780 yuan / ton (solid weight), last five up 10 yuan / ton; Shenyang Chengde Iron & Steel Price 3820 yuan / ton (solid weight), with the same last Friday; water in Chongqing Steel Price 3800 yuan / ton (solid weight), last five up 10 yuan / ton; Xi'an Dragon Steel Price 3900 yuan / ton (PolyU), and last five rose 80 yuan / ton flat. With steel wire for construction prices to rise to a certain extent.

It is understood that the frequent increase in the recent steel price is still the "main theme." Shagang Group announced last Saturday the ex-factory price in late June, the price adjustment to Shagang "pricing policies in mid-June," as the benchmark price of 180 yuan increase in wire rod, rebar price of 130 yuan, three on the basis of steel increases price of 120 per / ton.

Industry are generally of the view that the steel would promote the role of stock prices is obvious. In fact, after following the Shagang, Shaoguan Iron and Steel, Laiwu Steel, Hubei steel mill yesterday did more than raise the prices of some products.

Wire futures hit new high

Steel spot prices quoted on the futures market benefit. Yesterday, on the period of the rebar, wire trading to be strong, the main contracts are closed red disk. Among them, the wire 0909 main contract closed at 3825 yuan / ton, compared with the previous day settlement price rose 33 yuan / ton, a record since the contract in March a new high since listing.

Market participants said that the iron ore negotiations is still the focus of attention from all walks of life issue, once the Chinese side can not achieve the expected decline in domestic steel mills in the steel-making costs will become even more invisible firm, which is bullish steel market funds futures important reasons.

Last Friday, Vale do Rio Doce and the world's largest steel maker Arcelor - Mittal signed the Association in 2009 the price of iron ore long, the two sides agreed in 2008 based on the price of the older Association powder reduced ore, the price of ore blocks, decline were 28.2% and 44.47%, with Japan and South Korea prior to the agreement signed the same decline. Because CVRD and Arcelor - Mittal reached the Chinese iron ore prices fall below expectations, this is undoubtedly China's iron ore negotiations to bring about greater pressure.

However, in a tough position since Steel Association, this year's iron ore negotiations will not be the final deadline, the Chinese side insists on "when the bottom line when it reached the end of negotiations on China" principle.

So were the Research Department of futures investment that with the gradual recovery of the global economy, Europe and Japan and South Korea are to resume the production of steel, which will lead to global market demand for iron ore, the Chinese side the hands of the future will become a bargaining chip less and less. In the spot price of rebar and wire rod steel prices and the constant increase in the near future, the rebar and wire rod futures prices are bound to follow the spot prices and the rising price of steel is expected to challenge the early period of the high points. At this point, many investors are doing at the same time should maintain a prudent.