First, the steel industry boom straight up

In December 1st, China joint steel logistics Specialized Committee released the steel industry PMI index shows that in November the steel industry PMI index was 51%, last month rose 0.3 percentage points, the index rebounded for two consecutive months, and reached the highest point since May of this year, showing the iron and steel industry boom continues to rise.
Two, the price increase is high

Since November, the domestic steel prices affected by coal, iron ore and other raw material costs rise, soaring, and environmental governance overweight, market demand is not short off-season “ ” industry chain inventory decreased, impact factors, November steel prices continued soaring, until the end of two days, the market price will be cool. In addition, the black line commodity futures prices continued to rise, but also on the spot price movements have a stimulating effect. As of November 30th, the relevant index closed at 3320 yuan / ton, compared with the end of last month rose 640 yuan / ton, month rose 23.88% over the same period last year, prices rose 1370 yuan / ton, an increase of 70.26%, the highest since May 8, 2014.
Three, procurement continued to rise due to late production index rebounded

In November the steel industry PMI index index, the production index was 48.8% last month, down 1.9 percentage points, the index has experienced the first two months of continuous rise, and for four consecutive months in the expansion zone, returned to the contraction range, indicating the latter domestic steel production tends to fall. In addition, the purchasing volume index continued to rise to 55.1%, up 0.1 percentage points from the previous month, the highest in nearly 7 months since the import of raw materials; even two index rose to 52%, up 0.6 percentage points from the previous month; raw materials inventory index in the last month fell to the lowest point in nine months, this month also rebounded, stand at the critical point of 50%, 50%, last month rose 1.8 percentage points.
Four, the recent rise in the cost of production led to a decline in production

Data show that in the near future due to rising costs, tight supply of raw materials and the state environmental protection efforts to strengthen the impact of factors such as steel mills operating rate declined. According to the National Bureau of statistics, in October, China's average daily output of crude steel was 2 million 210 thousand tons, compared with September average daily output fell by 2.74%.
Five, finished goods inventory index continued to decline in the steel industry

In addition, in November the steel industry PMI index of the sub index, the steel industry finished goods inventory index continued to decline, to 45.1%, down 3.3 percentage points from the previous month, the lowest since May of this year. The index fell nearly two down and seven month minimum, display the current inventory digestion speed, to the inventory of steel “ &rdquo effect. China Steel Association data show that as of the end of the beginning of November, focus on steel enterprises steel stocks 12 million 914 thousand and 800 tons, compared with the end of the beginning of October fell 6.92% over the same period last year dropped 14.07%.
Six, is expected in December domestic steel prices overall will show xianyihouyang trend

Analysts pointed out that the domestic steel prices in November appear rare soaring prices high risk, overweight, in the regulation of the property market at the end of the face of tight financial situation, steel prices high adjustment is inevitable. But now the economy has stabilized, steel operating rates, stocks are low cost, strong support and other favorable factors based on steel prices after short-term adjustment, still has upward momentum, is expected in December domestic steel prices overall will show xianyihouyang trend.
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