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Currently still difficult to pull up steel prices

Date:2014-11-10 17:25:11

Perhaps in late October mills weak enforcement because of it, focusing steel prices daily crude steel output actually fell less than ten days MoM 60,000 tons during the week and at the APEC meeting in Beijing still has haze. See poor results, for the top have to upgrade pollution control measures, from Table Pizza needle into the meat, the inside by just know it's not a joke. Perhaps there is another object, in order to complete the elimination of excess production capacity this year, the goal of the sprint at the end. Achieve the effect of the double benefit by an upgrade program.

November 7, Hebei APEC meeting air quality of the work under the command of the Ministry issued "on the Hebei Province during the APEC meeting to take further measures to strengthen emergency pollution abatement notice." Notification mentioned for all coal-fired electric power enterprises in Hebei Province to limit production, reduction teams achieve an overall average of 50%; Hebei steel, coke, cement, glass and other industries all temporarily discontinued (stew furnace); the province's industrial enterprises VOC emissions of all processes involved in temporary shutdown.

This is the history of the most stringent pollution control emissions once, although only for the Hebei region. However, we all know, Hebei province crude steel production capacity of 2.5 million tons, accounting for a quarter of total capacity. If you press the focus of steel prices in late October, average daily production of about 1.7 million tons, according to a conservative estimate of the previous statistical base average daily crude steel output of other steel enterprises at 40 million tons. For the Hebei province of discontinued (stew stove), means the national average daily crude steel output to reduce the 1/4 day, which means in the cut-off period of a day to reduce the more than 50 million tons of crude steel, or more other computing market demand within this period or reduce 780,000 tons of iron ore per day. And this notice does not mention an end date.

To this end, through the above, regardless of the ultimate purpose of Hebei, where pollution control upgrades, as long as this measure can really perform, in its crude steel production will Cengceng term national decline. This is a major positive for the current steel market prices, despite the obvious characteristics of the current winter, the demand for the release of a limited, was tightening trend.

According to statistics, last week, the National Society for grades five stocks 10,229,400 tons, down 204,400 tons. Pericyclic continued to decline over the decline, there is a slight cold stocks rebound, showing that the market demand continued to shrink in the situation, but also shows that the current market demand has not been to the freezing point. However, taking into account the inventory of steel prices in late October release of 1.513 million tons large and mid-November the advent of the recent market is expected to increase shipments.

Also, consider the price of raw materials support. Hebei pollution control upgrades for billet, coke, it has advantages and disadvantages, benefits that will reduce the amount of production, the disadvantages is that demand has decreased. To this end, billet and coke prices firm may be a lot of wait and see. For iron ore, the benefits far outweigh the disadvantages. Currently imported iron ore prices decline does not change, to five-year low, and stimulate domestic iron ore continued to weaken. As of November 10, Platts 62% iron ore index fell $ 75.5. In a recent interview with Reuters, Rio Tinto chief executive, said Walsh, Rio Tinto production costs for the first half of 2014 to $ 20.40 per ton, the lowest in the industry, do not worry for iron ore prices to maintain plans to increase production. During the day, the demand for pollution control to reduce 780,000 tons of iron ore, which means that the recent iron ore prices will continue to decline, or is likely to accelerate.

Since Although, APEC meeting, the release of favorable growing, indeed also boosted confidence in the Steel City. The above, however, the demand is a major factor in rising steel prices constraints, followed by raw material prices, as long as both difficult to change, easy to pull up steel prices are still difficult. However, taking into account the actual situation of Hebei pollution control upgrades will allow a significant decline in crude steel production, if the steel market demand has not yet reached the freezing point, the inventory has not yet rebounded on steel prices to a higher level there is still hope

TypeInfo: Industry news

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