China Steel Industry Association recently convened a number of large steel mills in Shougang, Taiyuan Iron and Steel, Anshan Iron and Steel Fifth northern plate manufacturers Conference "was held. The dozen or so north of steel to discuss the decision jointly limited production price. Under the influence of changing market conditions, domestic steel production in July overhaul increased significantly. A total of 22 steel blast furnace maintenance, related to affect the production of 588,000 tons, 8,9 month, the 6 planned blast furnace maintenance of steel, including Sha Steel, TISCO, Pat Steel, Tangshan Iron and Steel manufacturers, including involving the impact of yield 79.5 million tons. In July, a total of 18 steel bar production line arrangement cut maintenance related to affect the production of 658,500 tons last month turned nearly Fan. In July, a total of 19 steel plate and strip production line arrangements for maintenance, hot rolled coil, cold rolled coils, plate, strip, respectively, affecting the yield of 290,000 tons, 50,000 tons, 95,000 tons and 49,000 ton.
According to the China Steel Association latest statistics show that 78 key statistics iron and steel enterprises in July 2012 crude steel average daily capacity of 1,651,200 tons, the average daily production is still maintained at 1.99 million tons, the mid-ring growth of 1.8%, in a statistical data The highest position since the end of last year the rebar period price below the average daily production of 4000 yuan mark compared to the average daily production of a full more than 20 million tons higher.
There are historical reasons for this year's iron and steel industry Jiduoshenhan both policy control, on the one hand policy control fire is concentrated in the real estate industry, resulting in demand for steel to be materially affected by, on the other hand, the tight liquidity credit accident endless bank more loan risk control, iron and steel industry has deepened, sustained continuous year, most of the bad financial strength of the steel trade is wiping out, and now even steel strapped for cash.
August 10, Baosteel announced the September futures price policy, which cut by 100 yuan / ton for hot rolled products, Baosteel continuous cut sheet ex-factory price in March, but the have dropped over the last distinctly narrowed. In July and August, Baosteel has substantially lowered the price of cold-rolled, hot-rolled products, two types of cumulative decrease of 400 yuan / ton.
Steel prices approaching the cost of steel production, such as Shanghai rebar futures t prices approaching or below 3500 yuan / ton, its average cost is similar, iron and steel enterprises profits sharply decline, or even losses. If steel prices near or below cost, the situation continues, the market is really down to force the steel production, there will be a crude steel production down situation. This is a major benefit to promote the stabilization and recovery of steel prices.
Social stock of steel has to be reduced. Three the rebar social stock in the Shanghai region from the early 25 tons, a decrease of 220,000 tons, a reduction of 2-3 million tons, to the inventory process is accelerating. However, the steel stocks are still relatively large, the social stock transfer to the steel mills, once entered the peak season demand for the steel trade and the organizational resources will be increased gradually released, end demand, coupled with the reduction of steel mills, steel inventory acceleration digestion, the oversupply situation be mitigated.
Steel collective production from the present circumstances, only the market confidence has been boosted, but the steel really uplink will depend on the results to the inventory, once inventory continuing decline, as long as the reduction of demand for steel is less than steel inventory reduction, steel, or at the line. So for the steel price trend requires a comprehensive analysis of judgment.
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