[SMM Thread Analysis] production restrictions hit, thread supply fell slightly in July, month-on-month ratio of-0.38%

According to SMM iron and steel research, 31 steel mills that mainly produce building materials plan to produce 8.5988 million tons of rebar in July, 33200 tons less than the actual output of 8.632 million tons last month, a month-on-month ratio of-0.38 per cent. Of these, the planned domestic trade volume for June is 8.3988 million tons, which is-0.63% compared with the actual investment of 8.452 million tons last month; the planned export is 200000 tons, which is 33200 tons less than the month-on-month actual export of 180000 tons, and the month-on-month ratio is-0.38%; the wire disk is planned to produce 2.8735 million tons, which is-2% higher than the actual output of 2.934 million tons last month. The planned domestic trade volume for July is 2.7235 million tons, 2.794 million tons month-on-month compared with the previous month, and the planned export is 150000 tons, + 7.14% compared with the month-on-month actual export volume of 140000 tons.

This month, the production schedule of steel mills was "dragged down" by North China, although production in other areas continued to increase, but the increase was not as good as the reduction in production, and fell back on the whole. First of all, under the influence of high temperature superimposed environmental protection policy in North China, especially in Hebei Province, local steel mills have different degrees of maintenance or production reduction. Among them, Tangshan steel mills are generally stricter due to environmental restrictions, and the reduction of local steel production is particularly obvious. Secondly, in terms of incremental steel mills, with the exception of North China, the production schedule of steel mills in other regions increased in July, mainly due to the stimulation of limited production news at the end of June, steel prices experienced a strong rise, although it fell back in the later period, but steel mills more feedback its profit situation has improved, so the enthusiasm for thread production is still relatively high. However, since the profit of screw thread has always been in the first place in the variety of common steel since the end of the year, the thread production line of steel mill has been in the state of full production, so in this case, the incremental steel plant output continues to push up the space is limited.

[specific circumstances]

The production of threaded steel in the main steel plants in North China is 1.715 million tons, which is-11.87% compared with the actual output of 1.946 million tons last month, and the actual output of 698000 tons is-13.83% compared with the actual output of 810000 tons last month.

XG (Zhangjiakou) this month thread production of 287000 tons compared with the previous month 360000 tons month-on-month-20%, in the middle and early July there are two thread production lines and a wire plate production line maintenance, affecting thread production of about 67900 tons, wire disk 22000 tons.

JX (Tangshan) this month thread production of 100000 tons, compared with the previous month 200000 tons month-on-month ratio of-50%, mainly affected by the production limit (the steel plant production limit ratio of 50%);

JY (Shijiazhuang) screw thread production of 812000 tons this month, compared with the actual output of 810000 tons last month is basically the same;

CG (Chengde) this month thread production of 229000 tons, compared with the actual output of 233000 tons month-on-month-2%, this month has a rod line maintenance for a week, is expected to affect thread production of 20, 000 tons.

The output of threaded steel in the main steel mills in Northeast China is 804300 tons compared with the actual output of 773700 tons last month, and the actual output of 197000 tons of wire disk is + 8.84% compared with that of the previous month.

LG (Lingyuan) screw thread production of 200000 tons this month compared with the actual output of 198000 tons month-on-month + 1.01%, one day more days this month, the steel mill is still in a state of full production;

TG (Tonghua) this month thread production of 103000 tons, compared with the actual output of 89000 tons month-on-month + 21%, because the thread profit is currently higher than other varieties, part of the coil production line will be turned to thread;

XL (Yichun) thread production of 255000 tons this month compared with the actual output of 246700 tons month-on-month + 3 per cent.

The output of threaded steel in the main steel mills in Northwest China is 985000 tons compared with the actual output of 976300 tons last month, 0.89% month-on-month, and 337000 tons of wire disk 332000 tons over the previous month, 1.51% month-on-month.

SG (Shaanxi) this month thread production of 810000 tons compared with the actual output of 806300 tons month-on-month + 0.46%, there is no maintenance plan in July.

The production of threaded steel in the main steel mills in East China is 3.453 million tons, 2.98% compared with the actual output of 335.3 tons last month, and the planned output of 1.324 million tons is 1.294 million tons higher than that of the previous month, and the month-on-month ratio is + 2.32%.

MG (Anhui): this month thread production 16.3 tons (last month 168000 tons), month-on-month ratio of-2.98%, building materials demand is still relatively stable, inventory also maintained at the normal level.

NG (Jiangsu): this month thread production of 160000 tons (last month 155000 tons), month-on-month ratio + 3.23%, thread profit is relatively high, the current gross profit of about 600 yuan / ton, medium and heavy plate only about 160000 yuan / ton;

SG (Jiangsu) this month thread production of 471000 tons (last month 455000 tons), month-on-month thread production continued to push up, has been at the highest point after the year.

BX (Lianyungang) thread production this month 236000 tons (last month 230000 tons), month-on-month + 3%, mainly one day more days this week.

The output of rebar steel in the main steel mills in Central and South China is 1.6415 million tons, 1.583 million tons compared with the previous month, 3.70% compared with the previous month, and 317500 tons compared with 317000 tons last month, with a month-on-month ratio of + 0.16%.

SG (Shaoguan) screw thread production of 300000 tons this month compared with the previous month 298000 tons month-on-month ratio + 0.67%;

EG (Echeng) this month thread production of 216500 tons (last month's actual output of 210000 tons), month-on-month ratio of + 3%;

LG (Hunan) this month thread production of 270000 tons compared with the previous month 235000 tons month-on-month + 15%, due to the poor profitability of other varieties, this month will be part of the cold rolling, hot rolling production line to turn to the thread.