Strong concussion of steel prices continued to winter reserves or can be prepared in advance

Billet easy to rise upside down blast furnace maintenance

As the "strong" environmental protection policy landed, the steel industry became the target of public criticism once again. Regarding the policy of limiting the production of blast furnaces during the heating season, many steel enterprises have already implemented them in advance. Recently some of Tangshan blast furnace blasting gradually after the holiday, after the end of the National Day holiday, Tangshan blast furnace operating rate continued to decline, as of the current statistics of 77.44%, a substantial reduction in the supply of billets, steel prices willingness to increase, middlemen Reluctant to sell mentality enhanced. With the downstream part of the transfer material business trial production run, the billet demand has increased, the supply and demand situation, resulting in billet prices easily up and down.

Inventory pressure has not increased Market mentality was optimistic

For now, the pressure on the inventory of various varieties did not continue to show a clear upward trend. To the billet market, for example, according to statistics of Golden Link on October 20, Tangshan leading stocking billet was 415,000 tons, down 0.05 million tons over last week. Recently due to the downstream on-demand procurement, the billet market is slightly optimistic, the latter trend or more depends on the finished product market performance. From the downstream market, at the present stage, the demand for some finished products is weaker and the price tends to rise or there is some resistance. However, with the frequent stoppage and limited production operation, there is no obvious pressure on the supply side and the market tends to be better. Short-term billet market is still likely to rise.

However, it is noteworthy that some sites in northern part of the country were closed down in winter in previous years, and the first large-scale shutdown of steel mills is the first time. Therefore, the shutdown of mills will have a greater impact on supply and demand. In addition, due to construction site constraints, 4-month shutdown will inevitably make it tight schedule, so after the heating season, the phenomenon of rush-site or focus on construction, building materials demand will therefore be released, so the end of this year business will Winter Reserve Or will be stronger than in previous years.

In summary, the large-scale shutdown of steel mills, limited production, the reduction of supply is an inevitable trend, this year's winter steel reserves or will be greater than in previous years. Steel market in short supply or will continue to support the market, so for businesses with winter storage intends, we suggest that you can start preparing in a timely manner.