The hottest steel market limits production, and th

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Since the heating season began on November 15, Tangshan has once again been pushed by the steel market to meet the requirements. The design of clamps is also a difficulty. The focus of production restriction ranges from 20% to 50% of the blast furnace situation. Enterprises with downstream continuous rolling steel have also reduced steel synthetic rubber, engineering plastics, fine chemicals, high-performance coatings, new fluorine-containing materials The production of organic high molecular materials has also been adjusted by strip steel enterprises. Affected by this, Tangshan steel prices led the country. According to data, this month, the cumulative independent "expansion Ao converter" circuit of billet increased by 160 yuan/ton, and the strip steel increased by 150 yuan/ton

recent news shows that some steel rolling enterprises are facing production challenges under the emission permit standard. At the same time, market news shows that in order to improve the quality of the atmospheric environment in Langfang this week, the production of steel enterprises may be affected, and this market is the production gathering place of downstream enterprises such as pipe and galvanized cold rolling. In this way, the upstream and downstream supplies are reduced at the same time, and it is worth exploring where the steel strip and billet market will go under the game

first of all, it is understood that strip steel has the highest profit level among many steel varieties, and the capacity of continuous casting and rolling strip steel accounts for 85% of the overall capacity of strip steel. The data shows that the strip production profit of continuous casting and rolling enterprises is 1100 yuan/ton. Therefore, continuous casting enterprises with steel production options control more other varieties and reduce the impact of steel production. From this point of view, the overall supply reduction of strip steel may not be as expected. However, from the perspective of strip steel demand, it is difficult to be optimistic about the overall strip steel demand under the expectation that the production of downstream enterprises in key markets is limited

secondly, the maintenance of steel rolling enterprises has restrained the momentum of billet transactions, and the billet market is facing a situation of low supply and demand. The implementation of the blast furnace production limit is very strong, and the reduction of the overall supply has formed a strong support for the billet price. However, on the other hand, the inventory of large households is high, and the maintenance statistics of downstream rolled materials show that the enterprises that changed coal to gas in the early stage have not all resumed normal production. In addition, two new strip steel production lines were added this week for maintenance, which further reduced the demand for billets, thereby curbing the price hike of billets

based on the above factors, it is found that both strip steel and billet are constrained by low demand to varying degrees, so billet prices have been continuously callback in the past two days. From the perspective of limiting production, the reduction of the overall supply is bound to have a strong support for the price, which is the guarantee that the steel price will remain volatile and upward in the medium and long term. However, at the same time, the periodic escalation of contradictions will also lead to a rational correction in the price. It is suggested that operators choose more medium and long-term operations, and the short-term operation risk is greater

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