The industry believes that as the environmental protection and pollution control campaign is gradually overweight, the recent steel mills in many places have been suspended production restrictions, the sharp decline in market supply of steel, coupled with the enthusiasm of traders to subside, led to the end of the year steel production stocks fell sharply.
In early November, with the popularity of the Third Plenary Session of the 18th Central Committee, the domestic steel market had gone through a wave of rising prices. After a short period of speculation, the steel price has turned sharply and the market has returned to a downturn. This has led to a reduction in steel production and a sharp drop in market transactions.
Steel analyst Yiu Qiucheng said that due to the environmental protection policy “pressingâ€, the steel mills in many places have entered the implementation phase of production cuts and production cuts, resulting in a drop in production. "The steel mills are not producing. The supply of steel in the market has dropped sharply and the inventory has naturally dropped."
In previous years, before the Spring Festival, steel downstream traders purchased the "winter storage" stage, but this year's "winter storage" market was particularly deserted.
Yesterday, a steel trader in the Tangshan region told reporters that steel society stocks have fallen into a trough. On the one hand, steel mills have reduced production, and on the other hand, they have also reflected the sluggish volume of transactions on the market.
He said that although steel stocks are currently at a low level, most traders are not very willing to make up the stockpiles of "winter storage." "Right now, raw material costs are too high, and steel prices cannot rise again. The market does not have good expectations. It means risk, and nobody dares to buy in large quantities."
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