Crude steel output near a record high steel prices rebound losing steam

Beijing around June strength storm of environmental protection, more news from discontinued production mills, cause market expectations of steel mills cut production. Cisa figures released yesterday, however, make good expectations & ndash; — Crude steel production is still near record highs. 8, the previous main rebar by contract fell slightly. According to the China iron and steel association, 8, the latest statistics show that crude steel production enterprises in late June 176. 240000 tons, the increment of 1. The aim of 70000 tons, rose 0. 97%, a record; The crude steel production forecasts for 218. 120000 tons, the increment of 1. The aim of 70000 tons, rose 0. 78%. In late June, analysts said, crude steel forecast daily output is still at historical highs. The findings came as a surprise to the markets. In June, the iron and steel industry into the focus of environmental regulation, environmental protection examination in hebei, steel mills such as halt production news constantly. Market expectations and steel mills cut production trends, hence have been falling since spring steel price regardless of & other Money shortage & throughout; , regardless of the off-season contrarian rally last week, nishimoto & ndash; — On Friday, steel index in the year's biggest weekly gain in 3520 yuan/ton. Steel futures market has a strong upward, the first time since late may return to above 3600 yuan/ton. Yesterday's crude steel output results disappointed the market clearly. “ High environmental protection said the tone of the storm, in fact, it may not be so, might turn off capacity opened again soon. ” An industry insiders said. Monitoring data also showed that the blast furnace of tangshan starts in early July was 91%, in May was 96%, 98% in March. “ Does not decrease significantly. ” Analysts say. Tangshan in the center of the storm, the environmental protection at the same time, tangshan iron and steel production accounted for 1/5 of the total national output, the data was typical. Since this year due to weak demand, steel price index has dropped 12% from the peak of the year, many steel mills operate at a loss, production be desirable, but expect repeatedly failed, even in the face environmental storms. Why steel mills cut it so hard? Nishimoto Shinkansen Qiu Yuecheng senior analyst thinks, steel production capacity is the key of the lending bank monitoring or not. Once the blast furnace production, enterprise cash flow problems, the Banks would withdraw loans, steel mills will get into financial difficulties, and keep high become of steel mills. It is understood that the current iron and steel enterprise overall debt ratio is about 68%, and in the process of a slowly rising. Steel production capacity to maintain high another reason is that, after the Spring Festival falling steel prices led to iron ore and coke index fell 20% and 27% respectively, with the wave of rising steel prices, iron and steel enterprises and profitable, conveniently to increase production nature is preferred. However, in the case of demand does not improve, high-throughput inevitably brings high inventory, and then further suppress the steel price in the future. Cisa, according to data from late June key statistics of the iron and steel enterprise inventory for 1267. At 90000 tons, 87 at the end of the early reduction. 40000 tons, but still record highs. Nishimoto Shinkansen Qiu Yuecheng believe that steel prices rebound in the lack of continuous driving factor, short-term domestic steel price or will turn into a small consolidation trend.