Iron ore fell in price by 3 percent within a week

The fall in the level of implementation of the finished rental per 1 percent over the past week of July affected the level of iron ore prices and led to a sharp decrease by 3 percent. At the same time, there were proposals and applications for transactions in the iron ore market, but there was no interest in their conclusion.

The influence of the weak market of steel is considered the main factor leading to "bear mood." Since a significant part of the reserves of raw materials was created over the past six weeks, steelfires are in no hurry to conclude transactions immediately. In addition, there are gloomy prospects for growth in the second half of this year. And they, most likely, will be confirmed if the government does not make decisions to introduce certain credit incentives for growth in order to instill hope in the short term to eliminate the depression of futures.

However, given the scale and size of the potential in China to growth in the construction of new housing and urbanization, the launch of infrastructure development incentives can radically change the situation in the market by the slightest mitigation of lending conditions. The government cannot but pay attention to the danger that the slow pace of economic development entails and should create a strong basis for business, first of all, softening the conditions of medium -term lending.

Analysts still believe that the surge in production of steel in mid -July by 2.4 percent after the initial correction of the trend will allow you to gain confidence in the iron ore market in the second half of 2013.