According to the analysis, the new orders index to reflect the actual changes in demand side and the cost of the change of purchasing price index significantly positive, display positive factors in the steel market. But it is worth noting that in February manufacturing index rose to its highest close since nearly 18 months, new export orders index fell back below 50% contraction range, finished goods inventory index rose sharply, show strong appetite steel mill production, export is blocked, the late supply pressure or will increase.

Index shows that the steel mills and production speed up. In February, the steel industry production index of three to 49.5%, up 3.9% last month. At the same time, and production related procurement activities showed a trend of obvious expansion. Purchase quantity index up 5.5% to 5.5% during the month, after 15 months after return to more than 50% of the expansion range, for its highest close since November 2014; Raw material imports index was 52.6% in February, up 0.9% from the previous month. A third straight raw materials inventory index rose to 51.1% during the month, after 11 months to more than 50% from the line, to the highest since February 2015.

From the point of the current practical situation, although the percentage of loss-incurring enterprises recently reduced, but most companies still loss-making situation, and the industry funds are still nervous. In addition, the current raw material market remains generally strong, if steel production increase, the cost is higher, if steel prices become loose, so the situation of steel mills profit improvement will be broken again, and production is just a flash in the pan.

At present, the cost of steel support significantly enhanced. In February, the steel industry purchasing price index continued rebound, from January rose sharply 11.1% to 49.9%, its highest level since January 2014. The index of three high, even up to 26 months show the current raw material prices rebounded significantly. Most robust, import ore and steel billet prices. On February 20th, import ore prices reached $51.2 a tonne, hit a record nearly four months.

Related index according to the report, the current domestic hong kong-listed in low production and low inventory under the action of "two low" effect, combined with a continuous power of policy support, has form a pattern of strong shocks in the short term. For late market demand will be key determinants of hong kong-listed to eventually, supply pressure is gradually highlight the market at present.