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The steel industry to speed up the production capacity, the short-term decline of steel prices is difficult to change

the steel is handed over to one enterprise. The production and construction industry to speed up the production capacity, the short-term decline of steel prices is difficult to change

China Construction machinery information

last week, Shanghai was dominated by overcast and rainy weather, and market transactions were more depressed. The average daily procurement volume of thread screw terminals monitored by institutions in Shanghai Stock Exchange fell by 1.77% month on month. The continuous downturn in demand has significantly inhibited the trend of steel prices

looking at the national market, last week, the inventory of rebar in 35 major markets in China was 3.901 million tons, an increase of 23000 tons, an increase of 0.59%; Wire stock was 748000 tons, a decrease of 20000 tons, a decrease of 2.6%. In terms of the total inventory of wire rod, rebar, hot rolled coil, cold rolled coil and medium and heavy plate in China, the total comprehensive inventory in China was 9.3375 million tons, a decrease of 78500 tons or 0.83%

overall, the national steel inventory fell for the fifth consecutive week, and the current inventory level fell by 8.84% compared with the same period last year. However, last week, the decline in inventory further slowed down, and the stock of rebar warehouse ended its four consecutive declines, with a slight increase. The hot rolling inventory became the most obvious variety, showing that with the serious loss of plate production, some steel mills with capacity transfer capacity have tried to give priority to the production of construction steel, and the supply pressure of construction steel market has increased

according to the data of the National Bureau of statistics, the growth rate of domestic real estate development investment in January was 2.0%, down 0.6 percentage points from the previous month, hitting a new low since March 2009. The monthly sales growth rate of the real estate market fell by 0.3 percentage points to 7.2% compared with the month, the new construction area fell by 13.9% year-on-year, increased by 1.3 percentage points compared with the month, and the land purchase area fell by 33.8% year-on-year, unchanged in the month. Meanwhile, at the end of October, the area of commercial housing for sale reached 686.32 million square meters, a record high, indicating that the adjustment pressure of the real estate market continues to increase

on November 13, Tangshan Songting iron and Steel Co., Ltd. officially announced that it would stop production completely, and all employees would have a holiday. This is the fourth exchange activity with government units and other XPS related industry associations in China after Shanxi Haixin iron and Steel Co., Ltd; Two five million ton steel enterprises shut down due to high debt and capital chain pressure, which means that China's steel industry has officially turned into a painful process of passive capacity reduction. However, considering that the channels for steel enterprises to sell experimental machines in the on-site market include manufacturers, dealers, traders and other industries, which still play an important role in local governments' economic growth, employment contribution and tax sources, the road to capacity reduction in the domestic steel industry is still quite long

in addition, a number of districts and cities under the jurisdiction of Suzhou, Jiangsu Province, recently issued a notice requiring a number of enterprises within the jurisdiction to limit production and stop production for a period of half a month from November 13 to November 27. The author checked the notice on the ambient air quality control plan of Suzhou in the fourth quarter and important sensitive periods issued by the Suzhou market government office, and pointed out that from October 25 to November 27, 2015, it is predicted that the air quality sub index data of PM2.5 in the next 24 hours will exceed 100 and have a continuous trend; The decrease of PM2.5 concentration is less than 7% for two consecutive weeks, and the weather conditions will still be unfavorable for the diffusion of air pollution. Meet one of the above two conditions, and comprehensively implement strengthened control measures on the basis of the implementation of normal control measures. All electric power, steel, cement and flat glass enterprises in the city will be limited by 30%, and those that can be shut down will be shut down; Except for rail transit construction sites, construction sites involving dust pollution in the urban area shall be stopped. Considering that the list of steel plants involved in the notice is only Shagang and Yonggang, even if the strengthened control measures are fully implemented due to bad weather, the impact of site shutdown is likely to be greater than the reduction in supply caused by the reduction of steel plant production. Therefore, the overall impact of the production restriction and shutdown of Suzhou enterprises on the supply and demand of the steel industry is limited

analysts believe that, on the whole, although there are signs of acceleration in the capacity reduction of the steel industry, under the situation of continuous downward growth of various investments, the contradiction between supply and demand in the domestic steel market is still prominent, and it is difficult for social inventories to continue to decline. In addition, due to the shortage of industry funds and the decline of costs, it is expected that the short-term decline in domestic steel prices will still be difficult to change

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