Recently, the Ministry of next year, China's iron and steel enterprise prohibited the production of a reinforced bar, two twisted steel, hot-rolled silicon steel sheet belong to the backward production capacity of products. Began favored since the 2008 earthquake, making high-strength steel, the state began to encourage the use of high strength reinforced construction works on the market demand with the high-strength reinforced promotion, steel mills is also ongoing research and expansion. Now the Ministry of Industry issued a document that starting next year, banning the production of twelve steel, on the one hand, in order to speed up the progress of energy saving, on the one hand, the upgrading of construction steel products. Only in the case of secondary steel production accounted for rebar half the fissile material cut-off statement will be what kind of impact caused by the construction steel market?
2 steel pressure weaker than that of high-strength steel, and the amount of steel in the production process, pollution of these years, countries have been promoting the use of high strength reinforced. The national policy is no doubt want to increase out of the intensity and pace, but the volume of China's steel industry is so large and out and can not expect one step. And this is only guidance documents on steel prices and the effect of mandatory phase-out effect can be predicted is not ideal, prohibit the production of policy, may appear the steel mills of the corresponding production be prohibited, while more small steel mills The profit increase.
Second, currently on the market twelve rebar occupies half of the construction steel market country, the main cause of secondary steel as opposed to three, four steel prices look cheap, Shanghai rebar, for example: Φ16-25 of HRB335 offer in 3920 $ Φ16 - 25 of HRB400 price of 4210 yuan, a difference of over two hundred yuan a ton. Businesses in order to reduce costs, will generally choose to use two steel; the huge demand of the two rebar market, does not exclude the more prohibit the existence of the possibility of the more expensive price, because the ban on the production of the steel supply and demand relationship completely reversed .
Analysts believe that due to the ban on the production of low-strength thread, then a large number of technical strength steel facing the technological upgrading of production capacity pressure or be eliminated; which may lead to China's steel production is reduced by half, is called a possible, mainly worry about the problems of executive power.
Two half of the total steel production, and the domestic market, especially the huge rural market demand, the price is relatively cheap rural steel is not too concerned about how the quality of quality, there is still a strong market, even if the state ban on the production, However, I believe also there are many adventures producers; In addition, some places like steel-intensive, local governments would be willing to completely tear down these taxes and employment are good for small businesses is also doubtful.
In the Ministry of Industry issued a document specifically to prohibit two rebar, at most, in an upcoming phase-out tide, the large steel enterprises producing high value-added products will occupy a distinct advantage, the private steel enterprises be hit hard. But the advantages of the two rebar still exist, the market demand is still great, so there is a demand there will be a market, like the energy saving for years, but still in a multi-protection, backward blast furnace according to the production is not missed. So we think that, in a secondary steel production capacity before the prohibition is not real, this policy is difficult to form a significant impact on the current price of steel construction market, steel is still by about weak demand.
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