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Steel new round of "price surge" incoming

Demand, raw material prices and other factors propelled
Recent news by environmental inspectors, the Hot Rolled Steel Coil market mentality significantly improved, some steel mills to stop production of self-examination, many active mills shut down, the market is expected to post supply will be reduced. At the same time, a new round of steel price increases is to enhance the market sentiment.
Yesterday, Shagang introduced in mid-August this year, part of the price policy, high wire and screw plate prices rose 50 yuan / ton, steel prices rose 80 yuan / ton, HRB400Ф16-25mm steel prices to 2560 yuan / ton. In addition, sources said yesterday, Baosteel September major varieties of steel hot-rolled, cold rolled coil prices by 100 yuan / ton.
On the same day, Tangshan Xin of billet mills also offer up 30 yuan / ton, general agreement households billet tax ex-factory price 2230 yuan / ton. In addition, as long as steel, Zhongtian Iron & Steel, Wing Steel and other construction steel producers were yesterday raised ex-factory price in mid-August, rebar increases 80 yuan / ton, high-wire, plate, screw up 50 yuan / ton.
"The recent demand, orders in good condition, with environmental protection, raw material prices and other factors overlay, various types of steel product prices are rising, reflecting mills optimistic." Guoxin coal steel futures researcher Shiyu Chen told Futures Daily Reporter.
It is understood that coke prices in Hebei mainstream program on the 12th again raised ex-factory price of coke 50 yuan / ton, this is the third time within a month to adjust, the cumulative increase of 130 yuan / ton, accumulated since July rose 220 yuan / ton. Coking coal market to be outdone, this month, Shandong coal market prices have risen 30-45 yuan / ton; August mainstream Hebei coal prices had canceled preferential policies, while coking coal prices start from August 1 yuan jumped 20-30 / ton; Shanxi Lu'an Group's coal prices start from August 10 rose 30 yuan / ton; Huaibei mining coking coal prices rose 20-30 yuan / ton.
Reporters from the Department learned some steel prices, the recent price increases of raw materials to open a chain pattern, steel mills and ferroalloy coking enterprises to corporate extended stay guarding shipments. "The situation this year is back, returning to the feeling now steel prices profits better than last year, but still not as good as in previous years." The source said.
"The biggest characteristic structural steel market is less cargo. In fact, the overall steel output current and a lot, but the steel low inventories become the norm." Analysts said that compared with previous years, the performance of the market demand is relatively stable, steel mills started rate is maintained at a relatively high level. The latest statistics show that the main structure of steel mills in Shandong Province started rolling line rate of 66.67%, 7.58% increase over last year.
"Although the current structural steel than in previous years to reduce the overall supply, but did not cause much pressure on the supply and demand side. Short term, this situation will continue." The analyst said.
National statistics agency 28 major superior special steel bar producers total inventories 545,700 tons, 838,800 tons over last year's inventory decline is obvious, but this year 432,500 tons compared to the lowest has been a marked rise . Overall, the market supply decreased compared with the same period in previous years.
At the same time, to the production capacity and environmental factors added, also makes the market demand for post-optimistic. The first seven months of this year, China's steel production capacity to only completed 47% of the annual target task. Recent high-profile group of environmental inspectors stationed in some provinces, steel production and operating conditions or be affected.
In previous years, from July to August is the off-season demand for steel, but this year sales booming steel market has rendered the situation. Shiyu Chen told reporters that since late July, steel rebar producers profit of 200 yuan / ton, hot rolled profit of 350 yuan / ton, which stimulated the production enthusiasm of steel, blast furnace operating rate increased slightly. From a policy perspective, the first half of the steel industry to the same period production capacity unfinished goals, the second half is expected to expand the scope of environmental inspection, if the strict implementation of environmental policy, the late steel production will be reduced.
CISA latest data show that in late July 2016, members of iron and steel enterprises crude steel daily output 1,620,800 tons, a decline of 4.08%. China Steel Association estimates that in July 2016 the national average daily crude steel output of 2.2251 million tons, a decline of 3.91%.
It said the respondents believe that the post-disaster reconstruction in the south, infrastructure projects have started, golden nine silver ten steel demand in the coming season, the supply-side reform continue to promote other positive factors supporting the domestic coke and coking coal price short-term will continue to rise by, billet and scrap prices a steady rise, the price of imported iron ore or a slight adjustment.
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