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Domestic steel mills have resumed production of crude steel with a daily weight of 1.9 million tons.

Release time:

2018-06-06

With the improvement of the steel market, the average daily output of domestic crude steel also ended in August and September continued to decline.

According to the latest data from China Iron and Steel Association, it is estimated that the average daily output of crude steel in the first ten days of October is 1.9162 million tons, up 4.0 percent from the previous month. Since late August, the national average daily output of crude steel has remained below 1.9 million tons for 40 consecutive days, and the average daily output of crude steel in September is expected to hit a new low since this year.

Yesterday (October 17), the reporter of "daily economic news" learned from my steel network that as of October 16, the comprehensive trading price of steel was 3880 yuan/ton, up 9.25 percent from the lowest point of 3551.6 yuan/ton on September 7 this year.

"Driven by the gradual improvement in terminal demand and the implementation of a new round of loose monetary policies in major global economies, the domestic steel market is expected to have a rare" golden nine silver ten "market in recent years." Nishimoto Shinkansen senior analyst Qiu Yuecheng said.

After nearly a month of rebound in steel prices, the efficiency of domestic steel companies has gradually improved and provided impetus for the resumption of production. According to data provided by Hu Yanping, an analyst at Zhonglian Steel, the operating rate of the effective volume of 148 blast furnaces rose to about 92% in early October. "At present, the profits of domestic steel mills are improving, and the daily output of crude steel is expected to rise to 1.91 million ~ 1.95 million tons throughout October".

In fact, the release of domestic crude steel production capacity has remained at a high level this year. Data shows that the daily production level of domestic crude steel in the first eight months was almost all above 1.9 million tons. Among them, the daily crude steel production level in April and June even exceeded 2 million tons.

However, due to the current domestic economic situation is still in the process of bottoming out, as well as the lack of confidence in the later downstream steel demand, since mid-October, domestic steel prices have seen a slight correction. "at a time when the domestic economy is still facing great downward pressure and it is difficult for market demand to rebound sharply, the accelerated release of steel mill production capacity will increase the pressure on market supply again and restrain the rebound space of steel prices." Qiu Yuecheng said.

Steel,China Steel Association

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