Position:Market Analysis

Reduction of output affects an analysis to market of domestic steel products

From;    Author:Stand originally
Price of domestic steel products will drop continuously since the last ten-day of a month in June, enter especially after September, drop increase significantly, drop inside the month of main breed material all amount to 1000 yuan / ton gigantic, the market adjusts strength to belong to in recent years place is peculiar. On one hand steel price drops considerably continuously, make the market trades dense of wait-and-see state of mind, clinch a deal the quantity lasts atrophic, pressure of inventory of steelworks, trafficker is increased. On the other hand, because steel price drops continuously, loss of the steelworks on the foundation in raw material of early days high price is severe, have the steel mill of long-term agreement to those especially. Of rolled steel price drop to also affect trade of upriver raw material considerably, cause the raw material spot price such as iron ore, coke drop, this reduced cost to throw the strength propping up of pair of steel price again conversely. To keep the price and stable market, domestic steely company in succession reduction of output or stop production.

On September 3, yang Saiming of Na Gang general manager expresses publicly on large forum, price of two months steel drops recently exceed expect, na Gang balance repeatedly, the decision is restricted to produce 10% .

On September 29, group of river iron and steel, head a few home such as steel of steel, An Gang, aid are main steely tycoon assembles in Heibei Han Dan, the agreement is restricted to produce according to actual condition severally 20% .

On October 8, in steel assist the report says Bao Gang, Sha Gang considers to be restricted to produce.

On October 9, heibei steely group decides to be restricted to produce 10%-20% again on the foundation that early days is restricted to produce

Iron and steel of hill of near future saddle also plans to produce reduction in production through be restricted 20% .

Pass as more and more domestic mainstream steelworks all sorts of " means " join be restricted to produce range, the supply demand relations with internal market of domestic steel products and balance are likely will produce change because of this. So these actions are in in short-term inside whether can change the market to anticipate, where is the steel price that stable home drops? The influence to the market how?

The near future produces situation of reduction of output with respect to the bounds of domestic steelworks, mysteel has a brief sampling investigation to domestic numerous steelworks, sampling object includes already in steel assist member unit, also involve numerous blame member unit. Share information of feedback of nearly 40 steelworks. Eliminate feedbacks " normal " enterprise and steelworks of the member that be not steel association, have 34 mainstreams steelworks about " reduction of output is restricted to produce " circumstance. There is the overhaul to be restricted to produce already in the information of these feedback, the reduction in production that again steelworks is made plans, the intent reduction in production that still includes steel mill. Those who stem from pair of market situations to judge angle is different, below current condition, each just may are opposite steelworks " reduction of output is restricted to produce " the understanding with behavior different existence. Analyse undermentionedly to facilitate, here 3 kinds of afore-mentioned circumstances " unified limit " for " reduction of output " , on one hand these action bring about steelworks possibly of steelworks reality output decrease, on the other hand, the jumping-off place that analyses here is judgement steelworks crop reduce the effect that brings possibly.
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