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[analysis of SMM steel market] there are many road transportation conditions-what is the specific impact in the near future?
Jul 29,2019 17:27CST
translation
Source:SMM
The content below was translated by Tencent automatically for reference.

For a long time, the situation of road transport has been concerned by all parties, but if the road transport is limited by various reasons, the shipping cycle of steel mills will be the first to be affected. Among them, strict investigation of transportation overload often occurs, and the market attention is also high. If the overload restriction is strict, not only the transportation cycle will be prolonged, but also the transportation cost will increase the additional burden (when the road is not limited, the weight of the whole vehicle is about 100 to 120 tons; when the restriction is strict, the weight of the whole vehicle is less than 50 tons, the difference is nearly 2 to 3 times), which has a great impact on the shipping of steel mills and the sales of traders.

Recently, various regions have set off a wave of strict control of transport overloading, and due to the changing weather, some areas are due to landslides, floods and other natural disasters caused by shipping delays. Among them,

 

Hebei area: affected by the strict restriction of overloading, the original truck carrying about 100 tons is now carrying 40 to 50 tons, resulting in the lengthening of the whole shipping cycle, and due to the increase in the number of shipments, the freight also increases, causing greater pressure to steel mills and traders. However, due to the impact of environmental protection and production restrictions in Tangshan area, all steel mills have reduced production to varying degrees, so the overall transport volume is lower than that in the previous period, so the impact is slightly smaller than that in the normal production period.

 

Rizhao area: affected by the strict restriction of overloading, the shipping speed of steel mills has been greatly reduced. Some steel mills want to restore the shipping speed step by increasing the number of transport vehicles, but the specific time of resumption of shipment is still uncertain.

 

Sichuan: under the influence of heavy rain, debris flow broke out in some areas today, blocking railway lines, resulting in temporary transportation on the Cheng-Kunming line, affecting the normal shipment of steel mills. The specific degree of impact and recovery date are being evaluated.

 

Boxing area: due to the rapid rise in the water level of the Yellow River, Lixing and Northern Song pontoons are scheduled to be temporarily closed at 16:30 on July 28, 2019, resulting in a delay in the delivery of resources from China Railway and vertical and horizontal steel mills to Boxing. The shipping time is expected to be delayed by 3 to 4 days, and the specific recovery time of the pontoon bridge has not been fixed.

 

Overall, under the influence of various factors, the shipment of most steel mills has been delayed to varying degrees, coupled with Tangshan environmental production restrictions continue to be reflected in the market this week, so the mainstream market arrival pressure is expected to be reduced this week. [SMM Steel]

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