Industry News

Jul 24,2018  Industry News.

Today, Tangshan Steel City staged a big game in which steel billets and finished products chased each other. Among them, steel billets rose by 40, Tang Qin wire rods rose by 60, small narrow belts rose by 60, steel bars rose by 20-30, and tube mills rose by 20- 40 individually rose by 50. The trading of billets and finished products showed a warmer than the previous two days, and some steel and strip steel manufacturers all cleared Nissan. In the early trading, the direct billet resources of the billet were very smooth. The leading resources of Changli increased by 10 to 3690 including tax. The warehouse stocks 3790-3800 including tax can be sold out. The mainstream steel enterprises in Qian'an also pulled up 10 to 3700 including tax. In the spot 3800-3810 including tax, there are transactions, coupled with the downstream wire and narrow belt surge, the mainstream steel enterprises in the afternoon moved up 10 to 3710 including tax, and the Changli resources in the afternoon chased 30 to 40,3720 including tax. Qian'an Steel Enterprise has risen by 10 and has risen by 30 to 3,720 including tax. Steel enterprises operate you to chase after me, the billet price is on the way, but the spot market price in the afternoon is 3810 including tax, but the high price transaction is slowing down.

Futures market

Tangshan environmental protection news continues, steel producers will rush to limit production tomorrow, and the supply of billet will be reduced in the later period; however, the downstream billet enterprises continue to stop production, the actual demand for billet is also limited, and the supply of bills is weak. Mainly. Today's futures performance is strong, the black futures market has turned red in the afternoon, and the intraday breakthrough is the high value of the previous period. The main peak of the snail climbed to 4014 at the high point of 1810, breaking through 4000 points in one fell swoop, greatly boosting the mentality of the spot market; Closed at 3963, an increase of 0.58%.

Finished product market transaction

Building materials

During the night trading period, the snails rose sharply and the business confidence recovered. This morning, the Shanghai building materials opened slightly higher. The intraday snails continued to climb and the spot transactions increased slightly. The spot price increased twice, with a cumulative increase of 40-50. . Tang Qin building materials rose 10-30 in early trading, thread trading was weak, wire and coil snail transactions were still acceptable, the intraday wire rods appeared twice chasing, the whole day rose 60, the thread and the snail chased 10-30. Taking into account the high cost factors and the improvement of environmental protection, the business mentality is better, the short-term price returns to a high level, and the building materials continue to rise.

Profile

Today's Tangshan profile is up more than 10, steel billet is up and stimulated, the overall transaction can be, part of the intraday trading price is raised by 10-20; afternoon billet price chasing up, in the afternoon part of the slot, the word price has been raised 10-20, high price The transaction slowed down. The billet rose sharply, and the intraday high-rising price adjustment and the increase in the number of transactions in the market showed that the “quantity and price increase” performance broke the recent stalemate and the market sentiment improved. Environmental factors have become the main driving force of the market. It is expected that the low price will become higher tomorrow and the price will be stable.

Strip steel

Today, the price of steel strips in North China increased overall. Tang Xiao narrow belts rose 60 in early trading, and the overall transaction was still acceptable. The 355 series traders had a bare spot price of 3570-3600 in the end, which was 10 points lower than before noon. Affected by the fluctuation of the raw material billet and the high snail, the market price of the strip in North China is generally higher, coupled with environmental protection and limited production speculation, the market transaction is still acceptable, so I predict that the North China strip will continue to run higher and higher tomorrow. (above unit: yuan / ton)

Summary of start-up situation

Building Materials There are 34 strip rolling lines in the Tangshan area, with a total operating rate of 41.46%, which was 3.66% lower than last week, including 31.43% of the thread and 48.94% of the high line and the snail.

Profiles Environmental protection and production restriction policy implementation, Tangshan billet rolling profile manufacturers stopped production, the current operating rate is only about 5.88%, finished goods inventory of about 547,000 tons (down 1.2 from last week), spot specifications are uneven

Strip steel Jinyu strip steel operating rate of 70%, down 2.22%; Tangshan / Langfang / Tianjin is 72%, 54.54%, 78.57%; Tangshan billet 36.84%

Macro news

The air quality comprehensive index or the monthly average concentration value of PM2.5 does not fall and rises three times in the previous year, or the two consecutive months are not falling, or the improvement rate is the first in the last two months of the city, Hebei. Provincial government leaders will openly interview relevant responsible comrades of the municipal government. As a big steel city, Tangshan has been relying on the environmental rankings. Under the pressure of the government, the government can only transfer the pressure to the steel mills, and stop production and stop all production methods to put the air quality up. This is both an opportunity for transformation and a challenge for production for steel mills.

In summary, environmental protection factors are still the main driving force of the market. During the period from July 20 to August 31, steel enterprises in Tangshan will stop the production of pollution reduction actions, and the supply resources of various varieties may be further tightened. The specific impact quantity still depends on the implementation. In the state of supply contraction, the steel price is stimulated to continue to rise. The superimposed period snail market is red, driving the price to rise, but the demand is low season, and the continuous procurement follow-up is weak. The market will form a certain pressure, coupled with the fear of high sentiment in the market, it is expected that steel prices will rise in the future.

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