China Steel Association: Steel enterprises should strengthen self-discipline to control the release of production capacity too fast

On September 25, the reporter learned from the China Steel Association that in August, the growth rate of the downstream steel industry slowed down, and steel prices fell due to factors such as steel production growth. In September, steel prices rebounded as raw fuel prices rose.

China Steel Association said that steel companies should strengthen industry self-discipline, control the release of production capacity too fast, and maintain market supply and demand to maintain stability.

Data show that at the end of August, the steel association CSPI China steel price index was 104.75 points, down 4.75 points, a decrease of 4.34%; compared with the same period of last year, it decreased by 17.24 points, a decrease of 14.13%.

From the whole month, the average price of CSPI China’s steel price index in August was 108.89 points, down 6.13 points from the July average, a decrease of 5.33%.

In terms of varieties, at the end of August, among the eight major steel products monitored by the Iron and Steel Association, the prices of cold-rolled sheets and hot-rolled seamless tubes continued to rise, rising by RMB 4/ton and RMB 81/ton respectively; high-line, angle and galvanized. The price of plate decreased from liter to 289 yuan / ton, 82 yuan / ton and 51 yuan / ton respectively; the prices of rebar, plate and hot rolled coil continued to decline, down 312 yuan / ton, 148 yuan / ton and 162 yuan / ton.

In terms of regions, in August, CSPI’s six regional market price indices all declined. Among them, North China and Northeast China decreased from up to 4.29% and 5.60% respectively; East China, Central South, Southwest China and Northwest China continued to decline, and the decline rate increased from last month, down 4.34%, 3.84%, 3.36 respectively. % and 4.31%.

China Steel Association said that the average daily supply of crude steel in August was 2.679 million tons, an increase of 3.4% from the previous month. Crude steel production remains at a high level and supply pressure is increased. In addition, from the overall situation, the price of iron ore and scrap has dropped significantly, and the support for steel prices has weakened.

For the future trend of steel prices, China Steel Association expects that the overall supply and demand in the domestic market will remain balanced, and steel prices will fluctuate slightly.

According to the analysis of the China Iron and Steel Association, the steel output will fall back from September to October, and as the weather turns cold, the next two months will gradually enter the low season of steel consumption; the heating season is approaching, and the environmental protection measures for autumn and winter will be introduced one after another. In the later period, steel demand will gradually weaken, steel output will also fall back, and the domestic market will maintain a basic balance.

The China Iron and Steel Association stressed that in August, the national crude steel output was 2.815 million tons, an increase of 2.4% from the previous month, and the production capacity release was still at a relatively high level. Iron and steel enterprises should strengthen industry self-discipline, control the release of production capacity too quickly, and maintain market supply and demand to maintain stability.


Post time: Sep-28-2019
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