Home > News > Steel limited production may lead to price rise

Steel limited production may lead to price rise

While the steel market is expected to tighten production limits for the heating season in Beijing, Tianjin, Hebei and surrounding areas, the relevant policies indicate that the ratio of production restrictions is no longer clear, and explicitly prohibit all production restrictions on environmental protection. Expected changes, resulting in steel price "Kim Gu" appeared high and wide shocks. In an interview with Shanghai Stock Exchange, steel industry analysts said that the uncertain production restrictions and the lack of short-term demand bright spot, "Yin Shi" steel market peak season difficult to prosper.
Tangshan Municipal Government recently issued a "key industries in autumn and winter differential staggered peak production performance evaluation notice," will be divided into four types of steel enterprises in autumn and winter staggered peak production ABCD, respectively, good peak, staggered peak 30%, 50% and staggered peak 70%. Another market source said that Jiangsu, another big iron and steel producer, will also take measures to limit production in the near future. Reporters from a steel plant in Jiangsu Province, the person in charge of the Department was informed that there are psychological preparations for limiting production, but so far has not received written notice. The situation of production restriction is not clear.
Analysts said that from the intensity of production restriction, Tangshan was lower than last year. As the market has psychological preparation and expectations for the introduction of official documents, the impact of the early draft on the market has been basically digested, coupled with the frequent production-limit policy in the last half of the year, the market has been fatigued for production-limit expectations.
"Since this year, various parts of the country have introduced environmental protection emission reduction programs, environmental protection of steel production restrictions almost throughout the year, price disruption at the same time, to a certain extent, disrupted the pace of steel procurement demand. In the off-season, to some extent, the market is overdrawn. Analyst Xu Liying said.
According to the relevant documents, the environmental protection production limit of Tangshan iron and steel industry has been implemented since October 1, and there is no clear document on the production limit of Jiangsu Steel Works. In response, the Pacific Securities nonferrous steel team said, driven by high profits, steel supply is expected to remain loose in the near future, short-term steel prices. In the medium term, most companies are expected to complete ultra-low emissions before the heating season, and overall supply-side easing should be a probable event. From the demand side, there is room for marginal improvement in infrastructure and consumption in the future. Whether the supply can be hedged loosely remains to be seen.
Analyst Ma Li said that because the current steel market price level is relatively high, steel traders speculative purchasing intention is very weak, mainly rely on just needed to support market sales. At this stage, the total demand for steel maintains a relatively normal level, steel prices are not easy to form a relatively obvious upward trend, the possibility of maintaining volatility is greater.
Share to: