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[brief comment on SMM Hot Volume] Tangshan Environmental Protection production restriction-this week, the arrival of mainstream market resources fell for the first time!
Jul 23,2019 16:33CST
The content below was translated by Tencent automatically for reference.

The overall resource arrival of hot rolled mainstream steel mills this week totaled 194000 tons, compared with 246000 tons-52000 tons last week, the arrival of goods in each mainstream market has been reduced to varying degrees, and the resource shipment has reversed the previous increase trend. Mainly because,

7 in the middle and early days, spot prices, stimulated by Tangshan environmental protection news, fell continuously after a wave of sharp increases, resulting in a more wait-and-see period of demand, which was originally in the off-season. As a result, the market transaction situation almost experienced the worst period since the off-season in mid-and early July. In addition, social inventories continue to accumulate and gradually hang upside down with orders in various markets. Since July, the Shanghai market has continued to hang 100 yuan / ton upside down, resulting in a poor mentality of traders and a weak enthusiasm for ordering by steel mills.

In addition, the decrease in the arrival of resources in each mainstream market this week is mainly concentrated in the significant reduction in resources sent by Hebei Steel works to various regions (in which Shanghai and Le from Yan Steel have reduced resources by 48000 tons). Therefore, it is known that the production limit of Tangshan environmental protection has been initially reflected in the market this week.

At the same time, it is worth paying attention to the recent Tangshan environmental protection production restrictions again issued a new policy, as far as the document is concerned, production restrictions continue to increase. At the same time, feedback from steel mill research, the ecological environmental protection conference will be held from July 26 to July 28, coupled with 27 and 28 as the seismic anniversary, Premier Li Keqiang may visit Tangshan, so the implementation of the new stop production policy is indeed stricter than in the previous period, so it is expected that the environmental protection production limit reduction may continue to increase in the later period, the probability of arrival in each mainstream market will be reduced, and the market supply pressure may be alleviated.

If you look at the market,

[Shanghai Market] Resources arrived at 85000 tons this week, compared with 103000 tons to 18000 tons last week. There has been a decrease in the arrival of resources, coupled with the recent improvement in market transactions, so market pressure has been slightly alleviated. Among them, the main resources are Angang, Bengang and WISCO.

[happy from the market] Resources arrived at 94000 tons this week, compared with 126000 tons to 32000 tons last week. Resources arrived for the first time in 7 weeks, and recently due to the conversion of part of the strip demand to hot coil demand, so the market transaction situation is better, so the market pressure has been alleviated compared with the previous period. Among them, the main resources are Yangang and Jianlong.

[Tianjin Market] 15000 tons of resources arrived this week, compared with 17000 tons last week. The arrival of resources is still on the low side, and the market pressure is relatively small. Among them, the main resources are Chenggang, Tangshan Iron and Steel Co., Ltd., Jianlong.

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