The most popular efforts to limit production the p

2022-08-02
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The price of deformed steel bars with great efforts to limit production has ignited a fire in winter.

"you are like a fire in winter, and the roaring flame has illuminated me" -- now, with the heating season in the north, steel production is limited, and the price of steel bars, especially the price of deformed steel bars, has ignited a fire in winter -- the data show that the price of deformed steel bars in some cities in eastern and southern China rose by more than 500 yuan a week on week from November 27 to December 3

next, will the fire of rebar prices burn more and more, and then "pierce" the bottom of the stock market, or will it be quenched by the logic that extremes will turn against each other? Please watch the interview with the daily economy

in some areas, the price rose by more than 500 yuan a week.

as the North entered the heating season in November, the production of steel mills was also limited. However, the strong demand for steel in the off-season has kept steel prices hot in the cold winter

monitoring shows that the steel index on December 4 reached 5110 yuan/ton, which has increased by 1720 yuan/ton since 2017, up 51.63% over the same period last year. The price index also reached a new high in the past six and a half years. The last time the same price appeared was on may4,2011

compared with the overall increase of steel, the price increase of construction steel represented by rebar is more significant. Data show that only last week (November 27 - December 3), prices in some cities in eastern and southern China rose by more than 500 yuan in a single week

the Ministry of industry and information technology station reported on November 3 that in order to promote the continuous improvement of the ambient air quality in autumn and winter in Beijing, Tianjin, Hebei and surrounding areas, the Ministry of industry and information technology and the Ministry of environmental protection issued a notice on August 3 that some industrial industries in "2+26" cities will come to China to carry out peak shift production in the autumn and winter of 2017-2018 for independent industrialization

in the "2+26" cities, Shijiazhuang, Tangshan, Handan, Anyang and other key cities, the steel production capacity is limited by 50% in the heating season (November 15, 2017 - March 15, 2018). Based on the blast furnace production capacity, the actual power consumption of enterprises is used to verify

it is worth noting that in addition to the "2+26" cities, Shaanxi, Anhui, Jiangsu and other places have also joined the ranks of production restriction. The overall implementation of production restriction is strong, and the market shows an obvious tight supply pattern

according to the latest data of CISA, in the middle of November 2017, the average daily crude steel output of key steel enterprises was 1.7718 million tons, a decrease of 29900 tons, or 1.66%, on a month on month basis; The national average daily output is estimated to be 2.2583 million tons, with a month on month decrease of 31600 tons, or 1.38%

Ma Li, an analyst, told the daily economy that the tight supply of resources caused by production restriction, together with good demand and market speculation factors, have created a sharp rise in the price of rebar

since the date of production restriction, the price of rebar has increased significantly. As of November 29, the average price of deformed steel bars in 10 major cities had reached 4585 yuan/ton, a full increase of 400 yuan/ton over November 14

data also show that the price of rebar in some cities in East and South China rose by more than 500 yuan in a single week (November 27 - December 3), leading the current round of rebar spot price rise

the social inventory of steel has fallen for seven weeks.

mi Pengqi, an analyst, told the daily economy that the demand of some manufacturing industries in the downstream of steel has not decreased. When the steel production slows down, the balance of supply and demand still tilts towards the steel industry, resulting in the upward trend of steel prices

according to the monitoring data, on December 4, the steel index reached 5110 yuan/ton, an increase of 51.63% over the same period last year. The price index also reached a new high in the past six and a half years. The last time the same price appeared, and there was vibration and noise: it was on may4,2011

in the view of many market participants, such a sharp rise in the short term is often followed by a sharp fall. Since Friday, the market turnover has declined significantly, and the price in some regions has dropped by 40 yuan/ton to 50 yuan/ton with a small force value resolution of almost 1 in 100000

however, Ma Li told the daily economy that there might not be a big drop this time because of low inventory support

according to the monitoring data, the national steel social inventory has decreased for seven consecutive weeks. As of December 1, the social inventory of steel in 29 key cities in China was 6.8346 million tons, a decrease of 386000 tons, or 5.35%, compared with the previous week, and the rate of decline accelerated by 1.36 percentage points. In particular, the national construction steel inventory has dropped to 3.33 million tons, 10% lower than the same period last year, creating the lowest level in nearly seven years

Haitong Securities predicts that the production restriction in winter will make the destocking continue until the middle of December. It is expected that the production restriction will affect the daily average crude steel output of 180000 tons to 200000 tons. The inventory decline will slow down but will drop to the middle of December

as for the steel price trend in the later period, Ma Li thinks that it is more likely to fall back slightly after rising. After the sharply rising rebar price is adjusted back to 100 yuan/ton - 200 yuan/ton, the downward trend will be stopped. For other varieties that have not risen too much, the decline is relatively smaller

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