Steel Market Situation

Current market concerns:
I. Limitation of production: Due to the recent increase in environmental pollution, various localities have introduced relevant production-restriction policies. At the same time, environmental protection and production restrictions in Xuzhou area have once again increased, requiring all three steel enterprises to stop production until New Year's Day. The estimated daily impact is 16,000. About ton, although this amount has little effect on the actual supply and demand side of the market, it does not rule out that the current multi-site production restriction policy frequently takes the opportunity to speculate in the downstream. Therefore, it is necessary to pay special attention to the actual impact on the market after the production limit. This network today's latest statistics on the national sample blast furnace operating rate: according to the volume of 84.9% weekly reduction of 1.01%; Hebei area by volume of 77.91% weekly reduction of 2.57%; Tangshan area by volume calculated as 78.59% compared with last week decreased by 1.16 %, it can be seen that the current actual impact is not large.
2. The decline in terminal demand is relatively obvious this week, and the total inventory of finished products has increased. Among them, the increase in thread and wire is large. The current demand increase is still sent to the winter storage. However, the current winter steel storage policy is uncertain and the steel enterprises are not able to limit production. Under the expectation, traders are not willing to sell goods, and they are still waiting to see the steel mill's maintenance and production reduction and winter storage policy.
With the approach of the Central Economic Work Conference, everyone generally has a good expectation for the short-term market. However, the current market is mixed with long and short news, and the short-term steel market will still be dominated by shocks and adjustments.