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Billet price meets "high tide"

National Day holiday has come to an end, the market after the festival did not open a downward channel as expected, but steel prices ushered in a wave of "upsurge", on the billet after the market from the following aspects of our analysis

First, cost.

The steel billet is the most active variety at the raw material end. The price of the steel billet has a direct impact on the steel price, and the conduction speed is faster than other varieties. Recent mainstream wind vane Tangshan billet prices as a whole show a concussion trend, straight-forward trading preference, spot merchants high price sentiment, the overall low trading performance is still acceptable, steel mills are still in environmental protection shutdown and production-related policies, limited market circulation resources, low warehouse inventory operation, play a supporting role in the market. East and northeast billet supply is more abundant, followed by the general resources in Guangzhou, the south end demand has been effectively released, the North Wood South effect is obvious, the market trading situation is basically proportional, from the current market, billet prices follow the black trend, it is suggested that businesses pay more attention to futures and finished products trading.

Secondly, steel mills.

From the point of view of steel mills, the profits of finished products and billets are still acceptable, only the steel mills have losses, and the steel mills have enough power to actively produce. So long as the wind blows, the steel mills will certainly raise prices, and the environmental protection is increasing the policy of stop production throughout the country, the market resources are still tightening. Businessmen still pay more attention to the fall and winter production restriction policy, social inventory is still a downward trend, maintain a low level of operation, the supply level is the game between high profit-driven and environmental protection production restriction. Advance quickly.

Finally, environmental protection.

Hebei Environmental Protection Department launched the first round of air environmental law enforcement special action in autumn and winter this year, taking a variety of ways, such as mixed grouping, remote law enforcement, cross-Law enforcement, and so on, to fully investigate the problem of illegal air-related environment. Environmental protection stop and limit production throughout the country, near environmental news constantly emerged to drive the market hype increased, to a certain extent, can promote the price of Lanzhou Steel. (source: Fu Bao information)
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