Steel off a new round of production cuts storm
According to the latest forecast of the Ministry of Industry and research institutions, the second half of the field of raw material industry is still not optimistic about the Steel City will continue to be in dire straits, the manufacturers out of the "conservative circles", ie, one after another after the price adjustment, the steel industry to start a new round of stop production maintenance. Cho Chong Consulting provides the latest data show that the East Sha Steel, Danyang Longjiang, Qingdao Iron and Steel, Laiwu Yongfeng, Liuzhou Iron and Steel in South China, Zhuhai, Guangdong Iron and Steel, Central South of the Cold Steel, security steel, LIANGANG,,, North China's Tangshan Iron and Steel, Handan Steel and Chengde Steel mills have started to blast furnace shutdowns.
It is understood that the domestic steel overcapacity and vulnerable market economy remains in the doldrums, and downstream demand weakness continuous spread to the steel (3762,48.00,1.29%) in each corner of the market, the reporter responsible for the population of a well-known steel mills in Henan confirmed The current round of cuts is a normal reaction of the market ". According to the person in charge, steel spot prices continued to fall since July, the local steel market price has fallen to 360-400 yuan / ton, this month cumulative decline of about 9.34%, crude steel costs by the full import of ore accounting over the same period fell by only 285 yuan / ton, down 7.66 percent. The rebar market price fell more than the decline of crude steel costs, on the one hand, a true reflection of the status quo of weak steel demand; the other hand, it also reflects the steel mill is currently suffering heavy losses, and close to the breakeven point. "In contribution margin under the premise, steel mills were forced to cut production." The official said.
Production is insufficient to weaken the confidence of the market?
"The recent steel repair more than regular maintenance or overhaul under the premise does not affect the planned production of the steel market is currently weak operating status does not have much impact."
Zhuochuang information able to promote this year, said steel analyst Liu Xinwei steel prices two effective rehabilitation rise steel substantive cuts maintenance and downstream demand. The present situation, the maintenance of enterprise increase, but the cut range, the only maintenance cut, a substantial proportion of blast furnace stop production is not high on the price boost is also slow. End demand is always subject to the progress of appliances, automobiles, shipping, machinery manufacturing industry downturn and downstream investment in infrastructure lag, despite the recent real estate sales has improved, but the for sale inventory is rising, and approaching real estate companies focus on the repayment period, late in boosting the demand for steel is still doubtful. Steel production can only ease the supply of contradictions, needs contradictions can not be resolved. Overall, the relatively limited impact on the market. "Steel researcher of the Chinese Academy of International Futures Liu Jie said.
"For stock traders, sellers, or the dominant ideology, while most of the stocks of merchants, and more have 'need to adjust the point of shipment, not to simply not purchase' attitude, the mentality of the market is still relatively pessimistic. one years of experience in steel trading business, said the purpose of the steel production to boost prices, but the current production rate is relatively small, it is difficult to reverse the decline in steel prices unilateral The situation can only partial response speed steel prices fell.
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