What Triggers Bullish Bets in Steel Market? SMM Reports

Published: Jun 29, 2017 12:04
On June 29, steel market in north China staged exorbitant gains, with billet and strip up 60 yuan, and 60-100 yuan in Tangshan, and up 70 yuan for hot-rolled coil in Tianjin.

SHANGHAI, Jun. 29 (SMM) – On June 29, steel market in north China staged exorbitant gains, with billet and strip up 60 yuan, and 60-100 yuan in Tangshan, and up 70 yuan for hot-rolled coil in Tianjin.

What are factors behind the big rise?

Tangshan Closes Another 4 Steel Mills for Overcapacity Elimination Target

Recently, environmental protection inspections have been stringent in Tangshan. Production at blast furnaces and sintering plants has been restricted by strict requirements. Meanwhile, steel output has been also curbed by capacity elimination efforts in Hebei. Earlier, Hebei Jinxi Steel Group Zhengda Steel said to stop production at its all lines before June 30, 2017. The company, having 450 M3 blast furnace, has monthly output of 40,000-50,000 tonnes of steel products, mainly steel strip. Xinli Iron & Steel has started its dismantling work.

China Iron Ore Market to See Upward Opportunity, SMM Reports

The deadline for eliminating “Ditiao steel”, a Chinese name for low-quality steel produced in intermediate frequency furnace with steel scrap as raw material, as well as rolled steel products produced with such steel as raw material, is nearing, also limiting output.

Moreover, some steel mills in Tangshan are taking capacity swaps, and before commission of new projects, suspension of old ones will also affect production, such as closing of three 450 m3 blast furnaces in Anfeng, and another three 480 m3 at one large mill.

Capacity elimination target and environmental factor triggered bullish bets in steel market, SMM concluded. In the short term, steel price in north China market is expected to hold firm, but downstream producers are turning cautious in purchases after sharp gains, which will cool down trading sentiment. So, steel market will largely remain under downward pressure in the off-demand period, and SMM will keep an eye on its development.

For news cooperation, please contact us by email: sallyzhang@smm.cn or service.en@smm.cn.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or for more information, please contact: lemonzhao@smm.cn
For more information on how to access our research reports, please contact:service.en@smm.cn
Related News
JCC Hongyuan Copper's $200M Expansion Project Aims to Boost Capacity to 550,000 mt by 2027
Sep 7, 2026 15:43
JCC Hongyuan Copper's $200M Expansion Project Aims to Boost Capacity to 550,000 mt by 2027
Read More
JCC Hongyuan Copper's $200M Expansion Project Aims to Boost Capacity to 550,000 mt by 2027
JCC Hongyuan Copper's $200M Expansion Project Aims to Boost Capacity to 550,000 mt by 2027
The 300,000 mt/year copper cathode expansion project of JCC Hongyuan Copper, a subsidiary of Jiangxi Copper Corporation, entered the pre-approval public notice stage of its environmental impact assessment on September 4, with a total investment of approximately 1.416 billion yuan. The project is planned to start construction in September 2026 and be completed in December 2027. Upon completion, JCC Hongyuan's total capacity will jump from 250,000 mt to 550,000 mt.
Sep 7, 2026 15:43
Japanese Yen Increases USD/JPY Drops Below 159 Amid Intervention Speculation
Sep 3, 2026 19:00
Japanese Yen Increases USD/JPY Drops Below 159 Amid Intervention Speculation
Read More
Japanese Yen Increases USD/JPY Drops Below 159 Amid Intervention Speculation
Japanese Yen Increases USD/JPY Drops Below 159 Amid Intervention Speculation
[SMM Precious Metal Express] The Japanese yen spiked sharply during Wednesday's trading, with USD/JPY falling below 159 and closing down 0.92% at 158.69, sparking speculation of Japanese currency intervention. The dollar index also dropped sharply, with a weaker dollar environment providing support for precious metals.
Sep 3, 2026 19:00
Wuhu Approves Environmental Impact Assessment for Anhui Motu's 500,000 kVAh Lead-Carbon Battery Project
Aug 26, 2026 17:02
Wuhu Approves Environmental Impact Assessment for Anhui Motu's 500,000 kVAh Lead-Carbon Battery Project
Read More
Wuhu Approves Environmental Impact Assessment for Anhui Motu's 500,000 kVAh Lead-Carbon Battery Project
Wuhu Approves Environmental Impact Assessment for Anhui Motu's 500,000 kVAh Lead-Carbon Battery Project
[Lead-Acid Battery Enterprise Dynamics] Recently, the Wuhu Municipal Bureau of Ecology and Environment issued an approval opinion, and the environmental impact assessment for the annual production of 500,000 kVAh lead-carbon battery assembly project of Anhui Motu Technology Group Co., Ltd. was officially approved. The enterprise will implement various environmental protection measures in accordance with the requirements of the environmental impact assessment approval, advance subsequent preliminary work, and start the project construction after all conditions are ready.
Aug 26, 2026 17:02
What Triggers Bullish Bets in Steel Market? SMM Reports - Shanghai Metals Market (SMM)