Winter is the off-season for traditional demand of steel . In recent years, the steel prices tend to appear deep down in the winter. for example, November to December in 2015, the Shanghai mainstream brand three large thread prices fell 270 yuan / ton, thickness of 3mm Q235B hot coil prices fell 110 yuan / ton. But this year's steel prices not only did not fall, but rose sharply. With the same specifications of three large thread prices from 2550 yuan / ton in the end of October rose to 3330 yuan / ton in early December, an increase arrive in 780 yuan / ton; Shanghai 3mmQ235B hot coil prices rose to 660 yuan / ton during this time. However, the driving force is not from the Winter storage about steel prices promote, but from the contraction of steel supply and the support of cost.
Since the beginning of this year, Tangshan region has been starting from the management of haze to promote the steel industry cut. After that, with the help of environmental protection and law to promote steel production to gradually promote. However, this year's steel industry profits maintain a high level, so the actual steel production not decline significantly. According to the National Bureau of Statistics, the national crude steel production decreased by 3.20% than last year to the end of March. But by the end of October, the national crude steel output arrive in 672.96 million tons, it has an 0.70% increase than last year.
Into the winter, the steel industry profits have decreased significantly, the proportion of the national steel profitability fell to 47.24%, reaching the lowest level in half of this year. At this time, in order to limit the frequency furnace, frequency furnace production process as the goal to further promote capacity measures. According to my steel statistics, the national furnace production capacity is about 110 million to 120 million tons, if such production out of the steel industry, steel production will effectively decline. Tangshan area where steel production fell about 500,000 tons per month.
At the same time, because the cost pressures, steel producers are generally reluctant to stockpile steel inventories in the winter. Steel demand recovery, real estate investment has a big contribution. The first 10 months of real estate investment has increased by 6.6%. Therefore, even if the real estates’ steel demand decline in next year, the overall demand for steel products may still maintain a balance. And it wiil be appear steel demand’ s peak in the first season of next year.
The end of last year shouted that the price of a pound steel is lower than a pound cabbage price, just one year, the price of steel is successful counterattack, from last year's 1,800 yuan / ton increase to this year’s 3400 yuan / ton .
BRD energy-saving building materials experts will personally customize for you One-stop environmental protection and energy saving building materials solutions!
Tel/Whats-app: 18838184177
Web: www.bundesteel.com
Since the beginning of this year, Tangshan region has been starting from the management of haze to promote the steel industry cut. After that, with the help of environmental protection and law to promote steel production to gradually promote. However, this year's steel industry profits maintain a high level, so the actual steel production not decline significantly. According to the National Bureau of Statistics, the national crude steel production decreased by 3.20% than last year to the end of March. But by the end of October, the national crude steel output arrive in 672.96 million tons, it has an 0.70% increase than last year.
Into the winter, the steel industry profits have decreased significantly, the proportion of the national steel profitability fell to 47.24%, reaching the lowest level in half of this year. At this time, in order to limit the frequency furnace, frequency furnace production process as the goal to further promote capacity measures. According to my steel statistics, the national furnace production capacity is about 110 million to 120 million tons, if such production out of the steel industry, steel production will effectively decline. Tangshan area where steel production fell about 500,000 tons per month.
At the same time, because the cost pressures, steel producers are generally reluctant to stockpile steel inventories in the winter. Steel demand recovery, real estate investment has a big contribution. The first 10 months of real estate investment has increased by 6.6%. Therefore, even if the real estates’ steel demand decline in next year, the overall demand for steel products may still maintain a balance. And it wiil be appear steel demand’ s peak in the first season of next year.
The end of last year shouted that the price of a pound steel is lower than a pound cabbage price, just one year, the price of steel is successful counterattack, from last year's 1,800 yuan / ton increase to this year’s 3400 yuan / ton .
BRD energy-saving building materials experts will personally customize for you One-stop environmental protection and energy saving building materials solutions!
Tel/Whats-app: 18838184177
Web: www.bundesteel.com
