The hottest steel market entered the peak season a

2022-10-18
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The steel market entered the peak season ahead of schedule: the steel price continued to hit a new high, and the enterprise profits "rose all the way"

the steel market entered the peak season ahead of schedule: the steel price continued to hit a new high, and the enterprise profits "rose all the way"

China Construction machinery information

China's steel market continued to rise sharply after the Spring Festival, presenting the traditional "golden three silver four" peak season prosperity in advance

mysteel data showed that as of February 22, the steel composite index was 3972.94, up 0.13% from the previous day. However, the index has increased by nearly 1% compared with that before the Spring Festival, after which Anhui thermoplastic can carry out experimental elastomer materials and products industry technology innovation strategic alliance was established in Hefei 0%. While the spot price of steel has soared, the spot price of iron ore, rebar and black iron ore such as methyl methacrylate grafts and sarin resin can be considered. However, after continuing to hit a new high in prices, the futures disk of the black series ushered in a correction on February 22

mysteel steel analyst xuxiangchun said, "the market expectation is quite optimistic. Coupled with the seasonal demand recovery, there has been a sharp rise, and the life of the steel plant is better than last year." According to a person from a steel plant in the eastern region, "the profits of the steel plant have been rising."

on the one hand, the optimism of the market stems from the good expectation of infrastructure in 2017. Northeast Securities mentioned in its research report that in January 2017, the national development and Reform Commission approved a total of 18 fixed asset investment projects, with a total investment of 153.9 billion yuan. This year, 35 new railway projects will be started, and the investment in railway construction will remain high. In addition, from the perspective of the provincial fixed asset investment plan, the total investment of the provinces that have announced the target has exceeded 40 trillion, which is basically concentrated in the construction of transportation facilities. It is generally believed in the steel industry that infrastructure will lead the demand for steel in the whole year

in addition, since the steel industry entered the de capacity stage in 2016, the market has always held contraction expectations for supply

according to the statistical data of China Iron and Steel Industry Association (hereinafter referred to as "CISA"), in late January 2017, the daily average crude steel output of iron and steel enterprises was 1620700 tons, a decrease of 0.18% from mid January. The average daily output of crude steel in late January hit a new low since mid March 2016

at the same time, according to Mysteel research data, the current domestic blast furnace capacity utilization rate is not increasing significantly. As of February 17, the blast furnace operating rate of 163 steel mills across the country was 74.86%, the same as last week, and the capacity utilization rate was 82.38%, with a weekly decrease of 0.66 percentage points. Mysteel believes that due to the impact of capacity removal and environmental protection regulation, the overall production of the steel plant is restrained compared with the usual open bath process, and the low supply provides a basis for the rise of steel prices

it is worth noting that the market's expectation of supply contraction is still strengthening recently. The convening of the "two sessions" and the special supervision of air quality carried out by the Ministry of environmental protection in the first quarter of 2017 have made steel enterprises in Hebei and other regions subject to more stringent environmental requirements. In addition, the rectification action of "ground bar steel" is still continuing, and the investigation results of various regions are also published from time to time

however, the continuous rise in steel prices is also causing concerns of relevant departments

on February 15, the Shandong Provincial Development and Reform Commission station forwarded an urgent document "notice on further implementing the policy of maintaining pressure and promoting the balanced operation of the steel market" (hereinafter referred to as the "notice") jointly issued by the national development and Reform Commission and other five departments, which aims to consolidate and resolve the achievements of excess steel production, improve the effective supply level of steel, and avoid sharp market fluctuations

some insiders believe that the above notice was issued before the Spring Festival, but it was not made public by Shandong Provincial Development and Reform Commission until a period of time after the Spring Festival, because the steel price rose sharply after the Spring Festival, or there was a need to stabilize the price

in view of the recent phenomenon of continuous high ex factory prices in steel mills, on February 20, CISA specially held a symposium on the production and operation of long material enterprises. At the meeting, liuzhenjiang, Secretary of the Party committee and Secretary General of CISA, delivered a speech titled "recognizing the situation and jointly maintaining the smooth operation of the steel market". Liu Zhenjiang pointed out that long-term timber enterprises should maintain their concentration on the price of long-term timber this year, and it is better to be stable. After a short-term surge, they will spit it out. We must consider the balance relationship between relevant prices. Liu Zhenjiang's speech even appeared harsh words such as "wait and wait for price increases to achieve benefits"

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