China Limits The Production of Steel in 2019

Take from Songshun Steel

At the background of Chinese take the action to limit the production of steel in 2019, the steel price also will be affected.

The recent time, the price of screw thread steel is raised. And it is over 40000 Yuan in China. And many steel companies say, even at the time of lower demand, but the situation of it is good. Many people are optimistic in July.

For the trends of the screw thread steel price in recent time, many people have own thought. All the people think the main reason for the price decreasing is the steel production limit. This action will continue to the end of July. So steel price will keep decrease in July.

As the steel production limit going, the production of steel will keep down. The price of steel will go up then slow down. As the profits of the steel factory decrease, the impact from the steel production limit will increase.

In addition, in the latest report of Tangshan City Air Pollution Prevention and Control Intensified Management and Control Plan, it shows that all the control measures are comprehensively strengthened on the basis of the peak production in the non-heating season. From the recently announced production limit notice and supervision preparation work, it can be seen that the intensity and intensity of production limits have increased significantly, which has increased market confidence.

From the production point, according to the National Bureau of Statistics data, Hunan spiral welded pipe manufacturers are reported to have a daily average output of 2.065 million tons of crude steel in key steel companies in early June 2019, an increase of 56,000 tons, an increase of 2.79%. As of the end of June 2019, the steel inventories of key steel enterprises were 1,302,500 tons, an increase of 1,667,200 tons, an increase of 14.68%. Crude steel production is still climbing, which will put some pressure on the supply and demand in the later period.

Under the continuous increase in production, there has not been a significant increase in stocks. As of June 28, 2019, the social stock of steel in 29 cities nationwide was 10.251 million tons, up 26,000 tons from last week. Although the inventory broke the 13-week continuous decline trend from June 14, there was a three-week increase, but only a cumulative increase of 394,000 tons.

Furthermore, the trade war between China and the United States is an important factor. The leader of the two countries had communicated on June 18. They talk about the common topic and relationship. Then the relationship is going well than before. And they had big divergence in G20. The trade war always in there and so complicated. And the influence always here for the international market.

No matter what is going on, developing technology is the most important thing for the steel industry. Our resources of material are so incredible for many countries. That is our big advantage. But the progress of technology will cut down the cost of steel. That will make the profit bigger and promote beneficial cycle.