Green policy limited bonus bonuses, steel prices set off another wave

"Environmental protection is the catalyst for the recent steel price increases.At present, the rolling mill in Tangshan 'coal to gas' deadline for the completion of the original plan before the end of September to be completed in advance to September 1. As rolled material manufacturers mainly related to profiles, Thread snail, strip and other parts of the enterprise, so these varieties will appear centralized stop maintenance phenomenon, also led to the rapid price increases in Tangshan. "Xing Yue said.

 

Golden Link analysts believe that the current round of price increases are mainly based on the impact of environmental protection, the Central Environmental Inspectorate has achieved full coverage of the 31 provinces and municipalities across the country. From the recent implementation of the point of view, environmental protection is no longer a "gust of wind", the level of accountability is high or unexpected, also led to the recent implementation of environmental protection at an unprecedented intensity.

 

According to the pre-release policy shows, Shijiazhuang, Tangshan, Handan and other key areas in the heating season steel production capacity of 50%, based on blast furnace capacity, using the actual electricity consumption verification. Under the premise of ensuring safety, according to the principle of "keeping the pressure and keeping pressure", the heating season will extend the coking period to 36 hours for the coking projects without sewage discharge permit, extend the coking time to 30 hours for the coking projects restricted by the state industrial policy, Order to stop production, the province's coking enterprises limited production of about 30%. Policy will affect the overall supply of steel, raw material demand and market expectations. In accordance with the implementation of the limited production level of 30% -50% to measure, is expected to affect the crude steel production of about 15,000-3000 million tons, will also affect the total demand for ores and coke.

 

"In the case of environmental protection policies continue to intensify the implementation of the situation, will benefit more steel prices, but the negative raw materials and addition to the heating season of limited production, there are big nine held in the second half, the National Games held, or continue to increase environmental protection efforts . "Analyst Wang Ning believes that although steel prices have been rising for several months, but the market is still in the balance between supply and demand. However, the current price hikes or have reached the stage of the peak, good speculation overdrafts, low iron in August or there will be 300 yuan to 400 yuan price callback. Since then, with winter approaching the limit, the end of September steel or will rise again.

 

"Recently by the environmental restrictions on production and other favorable news to stimulate fermentation, billet, snail rose side by side, the market pulled up emotionally strong.Although prices inevitably have a high callback, but the market as a whole is still in a strong state." Analyst Du Xiuzhi Also said that with the continuous environmental monitoring, comprehensive management in all regions has also entered a white-hot level.

 

In some areas the news performance is particularly prominent. As of August 15, Tangshan Port, Jinggang Port area to stop the coal gas gathering port operations. At the same time, Hebei, Shandong part of the coking plant limited production, stuffy furnace began to increase, Shanxi documents missing requirements for the production cut-off, part of the rolling business requirements for production. The upper limit of coal-fired enterprises, cut-off lead to market expectations of coking coal supply gap, coking plant prices continued to pull up. At the same time, this wave of price increases is led by the two coke, followed by the rebar and other varieties, including ore, soared.

Enterprises said that in the recent environmental protection meeting, stop the storm stimulation, the market once again appeared crazy pull up the situation, many species showed a single day up more than 100 phenomenon. However, with the wide price rise, downstream and terminal merchants wait and see sentiment, coupled with the terminal hard-edged demand has not improved, the market transactions are often high prices were weak, short-term adjustments are inevitable. At present, the good news from the fundamentals in the steel market is still more, and it is expected that the overall probability of higher prices will still be in a stronger position.