Home > News > Steel mills collectively raise the price of the plant, and steel prices will skyrocket soon?

Steel mills collectively raise the price of the plant, and steel prices will skyrocket soon?

Shanxi Jianlong building materials prices up 30 yuan / ton, Yunnan Desheng building materials prices up 50 yuan / ton, Shandong Xiwang building materials prices up 60 yuan / ton, Laigang Yongfeng building materials prices up 70 yuan / ton... Recently, more than 10 steel enterprises collectively raised the ex-factory price of steel, rising from 20 yuan / ton to 70 yuan / ton range. As steel mills raise the factory price of steel, will the price of steel rise? Langer experts said that the overall view of the current situation does not have the conditions for a sudden rise in steel prices in the near future to run mainly high shock.

A few days ago, Beijing, Tianjin and Hebei suffered fog and haze weather, and then Hebei Province immediately issued the "Notice on Starting Regional First and Regional Second II Emergency Response", which is the first regional heavy pollution weather emergency response in Hebei Province since the fall of this year. "Notice" requires high-emission industries to adopt heating season differential staggered peak production, general overcapacity industry enterprises, take turns to stop production to reduce pollutant emissions. At the same time, measures such as banning fireworks and firecrackers, barbecuing in the open air and restricting motor vehicles are put forward for the main urban area.

Linfen has also announced the differential peak production plan for the heating season from 2008 to 2019. According to the actual situation of iron and steel enterprises, four kinds of production plans will be formulated, namely, unlimited production, limited production by 30%, limited production by 50% and stop production. The implementation time will be November 15, 2018 to March 15, 2019. In addition, Langfang began to reduce steel production capacity, Langfang proposed by the end of December 2018, compressed steel production capacity is 7.38 million tons, will reduce the supply of steel in the next two months. With the further implementation of the policy of environmental protection and production restriction, the capacity of steel mills has been further reduced, coupled with the rising price of billets, so steel enterprises have raised the price of steel products.

Steel mills have different views on the factory's factory price increase. Zhang Yahui, general manager of Beijing Zhonggang Trading Co., Ltd., said that demand is still relatively strong, steel plant inventory and social inventory have declined, the steel market is still healthy. But the future divergence is relatively large, mainly in late November or so, reflected in the demand side of the sustained and winter storage, now wait-and-see attitude.

Li Dong, manager of Beijing Marriott Iron and Steel Co., Ltd., also said that the current market demand is relatively good, and the social inventory is relatively low, resulting in steel prices. But he said that he would not take a wait-and-see attitude at the moment and would actively purchase.

At present, the demand for steel is expected to increase as the construction site accelerates. At the same time, a series of policies to make up for the shortage of stable investment are being "fermented". Railway construction, as one of the protagonists of "stable investment", has invested more than 100 billion yuan in railway fixed assets in September. Some experts believe that this year's national railway fixed asset investment is likely to be close to 800 billion yuan. In addition, the Strategic Plan for the Revitalization of Rural Areas (2018-2022) clearly states that infrastructure construction should be focused on rural areas and investment should be continuously increased. It is foreseeable that rural construction will be a huge domestic demand.

With the increasing demand, steel prices have formed certain support. But steel output has not increased significantly. According to the latest data from the China Steel Association, the average daily output of crude steel of key steel enterprises in China was 198.74 million tons in early October, up only 0.13% from the previous ten days. After two weeks of continuous increase in inventory, there was a downward trend. According to the monitoring data of Lange Steel Cloud Merchant Platform, as of October 19, the social stock of steel in 29 key cities in China was 8.848 million tons, down 353,000 tons from the previous week and 49.8% from the highest stock in March. With the decline of steel output and inventory, it will play a certain role in boosting steel prices.

Wang Guoqing, director of the Lange Iron and Steel Research Center, said that the current price increase of steel products has played a supporting role in the market; in addition, the recent release of environmental protection production restrictions in autumn and winter and environmental control, verification work, steel prices also have some support. At the same time, the strong price of iron ore and Coke will play a certain role in cost. However, the current market wait-and-see mood is strong, trading slightly weakened, the overall view of recent high steel prices to run mainly volatile. (source: Lange steel)
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