【Summary description】According to the monitoring of the Ministry of Commerce, last week (May 11-17), the market prices of edible agricultural products in 36 large and medium-sized cities across the country continued to fall, and the prices of production materials in the circulation link increased slightly. Steel prices fell by 0.5%, of which hot-rolled ordinary sheet and ordinary round steel fell by 0.9% and 0.8% respectively.

According to the monitoring of the Ministry of Commerce, last week (May 11-17), the market prices of edible agricultural products in 36 large and medium-sized cities across the country continued to fall, and the prices of production materials in the circulation link rose slightly. Steel prices fell by 0.5%, of which hot-rolled ordinary sheet and ordinary round steel fell by 0.9% and 0.8% respectively. Last week, the Myspic Composite Index reported 91.09 points, down 1.17% from the previous week, and the decline increased. At the beginning of the week, the central bank announced a 25 basis point interest rate cut, the commodity futures market rebounded, but the spot market was still flat, and then under the decline of the forward market, the decline in spot prices began to increase, the market pessimism revived, and billet prices also fell by 50 yuan / ton.

Last week, the US non-farm payrolls added 223,000 jobs in April, the unemployment rate hit a seven-year low, but wage growth was weak; the PPI fell year-on-year in April, the largest in five years, and the US economic data was mixed, and the Fed raised interest rates in a dilemma. Eurozone GDP grew 0.4 percent in the first quarter, weaker than expected, and the German economy weakened. The ECB said it would still implement QE until inflation continued to rise. Greece sharply lowered its full-year GDP growth forecast to 0.8%, down from the forecast of 1.4%. UK industrial output rose 0.5% month-on-month in March, the highest since February 2014, and expected to be flat. The Bank of England left its benchmark interest rate unchanged at 0.5%. Domestic: On the 11th, the central bank cut interest rates by 25 basis points and raised the upper limit of the floating range of deposit interest rates to 1.5 times.

In April, the added value of industries above designated size increased by 5.9% year-on-year, accelerating by 0.3 percentage points month-on-month. From January to April, the national fixed asset investment was 12 trillion yuan, a year-on-year increase of 12.0%, and the growth rate was 1.5% lower than that from January to March. From January to April, the national real estate development investment was 2.3669 billion yuan, an increase of 6.0% year-on-year, and the growth rate was 2.5% lower than that from January to March. In April, the electricity consumption of the whole society was 441.5 billion kWh, an increase of 1.3% year-on-year. The average daily output of crude steel in China in April was 2.297 million tons, an increase of 2.5% month-on-month; The average daily output of steel was 3.2137 million tons, an increase of 2.1% month-on-month, the second highest level in history. Baosteel's steel price in June was mainly flat. China and Russia signed 32 large orders worth $25 billion. Li Keqiang will go to Latin America to promote the "two-ocean railway" again

Overall, although the market is partially favorable, but it is diluted by the continued sluggish demand, merchants are more difficult to ship, and in desperation continue to lower the quotation to facilitate the transaction, but the downstream end users do not buy it, under the psychological expectation of buying up and not buying down, procurement is more cautious. In general, the volatility of the futures market has intensified the space for market price fluctuations, but it is difficult to improve demand, and the overall price will still be volatile and weak.