Environmental protection limited production to suppress suppl
Jun 25, 2018
This year, the real estate rush is stronger than in previous years. This demand will provide support for the strength of rebar. On the other hand, the market has a weak expectation of the macro economy, and suppresses the space for the price increase of rebar futures. Overall, steel prices will continue to oscillate.
From late May to now, environmental protection in various places continues to be high and has a significant effect on steel supply. At the same time, the real estate industry is different from previous years of rush to work, making this June is the off-season, building materials transactions are still strong. This has also led to a sharp rise in the price of steel. Last week, the price of rebar futures rose from 3804 yuan / ton to 3902 yuan / ton, or 2.52%. Spot, Shanghai rose 110 yuan / ton to 4220 yuan / ton last week, Guangzhou rose 10 yuan / ton to 4300 yuan / ton, Beijing rose 20 yuan / ton to 3980 yuan / ton.
In the near future, environmental protection measures have been kept continuously. At the end of May, 6 central environmental protection inspectors were set up. They were responsible for the "look back" inspectors in Hebei, Henan, Inner Mongolia, Ningxia, Heilongjiang, Jiangsu, Jiangxi, Guangdong, Guangxi, Yunnan. In mid June, the Qingdao Shanghai Cooperation Organization summit was held in Shandong, and the steel mills in Lianyungang and Lianyungang restricted production. Recently, it was also reported that Changzhou, Zhenjiang and other areas were affected by environmental inspectors, requiring local steel enterprises to limit production by 50%. In June 14th, some steel mills in Tangshan were informed that due to the occurrence of moderate to severe pollution processes, the production of sintering plants in Tangshan's regional steel mills began to be limited.
