Whether collective production cuts can stimulate steel prices turn up?
Recently convened by the China Iron and Steel Industry Association the Shougang, Taiyuan Iron and Steel, Anshan Iron and Steel, and several large steel mills convened the fifth sheet production enterprises meeting the northern region. Northern dozen steel mills after deliberations decided, combined with limited production price. Under the impact of changes in the market environment, the domestic steel mills to cut maintenance in July increased significantly. A total of 22 steel mill blast furnace overhaul involving affect the production of 588,000 tons, steel mills planned blast furnace maintenance in August and September of six, including Sha Steel, TISCO, Bayi Steel, Tangshan Iron and Steel and other major companies involved affect yield 79.5 tons. In July, a total of 18 steel bar production line arrangement cut maintenance involving affect the production of 658,500 tons last month turned nearly Fan. July, a total of 19 steel plate and strip production line arrangements overhaul involving affect the production of 290,000 tons of hot rolled coils, cold rolled coils, plate, strip, 50,000 tons, 95,000 tons and 49,000 tons.
According to the latest statistics show that China Steel Association, July 2012, 78 national key statistics iron and steel enterprises in average daily production capacity of 1,651,200 tons of crude steel, average daily production is still maintained at 1.99 million tons, late growth of 1.8% in the statistics highest position since the end of last rebar futures price fell below the average daily production of 4,000 yuan mark can be compared to a full average daily production of over 20 million tons higher.
There are historical reasons for this year the steel industry Jidushenhan both policy control, on the one hand policy regulation firepower concentrated in the real estate industry, lead to demand for steel to be materially affected by the other hand, lead to endless credit accident tight liquidity, bank Deepening the loans on the iron and steel industry-wide risk monitoring, continuous year, the most incompetent of financial strength steel trade shuffling out, and now even the steel mills are also strapped for cash.
August 10, Baosteel announced the September futures price policy, which is down 100 yuan / ton of hot-rolled products, Baosteel March cut sheet prices, but the reduction in time significantly narrowed compared to the previous. In July and August, Baosteel has substantially lowered the price of products such as cold-rolled, hot-rolled, two types of products cumulative drop of 400 yuan / ton.
Steel prices fell after approaching the cost of steel production, such as Shanghai rebar futures tons price approaching or below 3,500 yuan / ton, its average cost of similar iron and steel enterprises is a sharp decline in profits, or even losses. If steel prices continue near or below cost, the market will really pour forcing steel production, the situation appears crude steel production fell. This is a major benefit to promote the stabilization and recovery of steel prices.
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