In the steel price "stumbling" to slow down, the expectation of environmental protection and production restriction policy has become the supporting point of market sentiment. Under all expectations, today, a "notice on the city's enhanced air pollution control plan in August" (on behalf of the draft) flowed out, if the later official documents do not change much, then according to the documents, Tangshan production restrictions will be relaxed in August. Among them, it is mainly reflected in the production-limiting equipment and the proportion of production-limiting:
In the production restriction policy in July, in addition to Tangshan Iron and Steel Co., Shougang stainless Steel, Shougang Jingtang, Winfeng Iron and Steel, Huaxi Iron and Steel, Tianzhu Iron and Steel and Guoyi Special Steel, seven steel enterprises have a half-month production "exemption". The average monthly production limit of other steel enterprises ranges from 20% to 50%, and the production limit proportion of more than half of the steel enterprises is about 50%. In this document, a total of 17 steel enterprises have no restrictions on blast furnace equipment for the whole month, and only two steel enterprises with a production limit of 50%.
According to SMM statistics, as far as the submission is concerned, the production limit in August is expected to affect pig iron production of 1.3422 million tons and iron ore demand of 2.0025 million tons, a decrease of 1.8558 million tons and 3.8742 million tons respectively compared with July.
If the Tangshan area production limit in August is really implemented in accordance with this proposal, it will add another fire to the steel production that fell slightly in July, and the upward risk of steel prices will also increase again. Therefore, in this expected case, this thread, hot coil surface a "green light", only iron ore "a little red in the green bushes."
