Recently, with the continued weakness of steel prices, steel mill profits continue to compress, according to SMM data model estimates, since this week, electric arc furnace plant into a loss state (2260 yuan / ton tax-free scrap steel price calculation, as of June 19, electric arc furnace steel plant ton steel loss 43.5 yuan / ton), according to SMM research, East China, South China and southwest and other regions of the arc furnace steel plants have been varying degrees of production reduction phenomenon. As for the long process steel mills, according to SMM statistics, according to the maintenance news announced by the building materials steel mills so far, the impact of building materials maintenance in July was 1.53 million tons, which was 2.3423 million tons less than that of 3.8723 million tons in June, mainly due to the fact that although the average profit of the screw thread was reduced by nearly 300 yuan / ton to 350 yuan / ton compared with that in May, the feedback thread of most steel mills still belonged to the highest profit in the general steel varieties, in addition, from the present point of view, The demand for building materials is still there, and the warehouse of steel mills is also maintained at a normal level, so in this case, steel mills are still maintaining a state of full production, and the pace of production has not slowed down significantly. However, due to the current raw material end is still strong, steel mill profits may continue to be compressed, and now just entered the late June, the follow-up steel mill related maintenance situation SMM will continue to track.
