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        Steel enterprises should strengthen self-discipline control

        2019-11-12

        On September 25, a reporter from Beijing News learned from CISA that in August, the growth rate of downstream steel industry slowed down. Influenced by the growth of steel production and other factors, steel prices fell month on month. In September, as the price of raw materials and fuels rose, the price of steel rebounded.

        CISA said that iron and steel enterprises should strengthen industry self-discipline, control the release of production capacity too fast, and maintain a stable market supply and demand.

        According to the data, at the end of August, CSPI China steel price index was 104.75 points, down 4.75 points on a month on month basis, down 4.34%; compared with the same period of last year, it was down 17.24 points, down 14.13%.

        In terms of the whole month, the average CSPI China steel price index in August was 108.89 points, down 6.13 points or 5.33% from the average in July.

        In terms of varieties, at the end of August, the prices of cold-rolled sheet steel and hot-rolled seamless steel tube continued to rise, with a rise of 4 yuan / ton and 81 yuan / ton on a month on month basis respectively; the prices of high-speed wire, angle steel and galvanized steel plate changed from rise to fall, with a decline of 289 yuan / ton, 82 yuan / ton and 51 yuan / ton on a month on month basis respectively; the prices of deformed steel, medium and heavy plate and hot-rolled coil continued to decline, with a decline of 312 yuan on a month on month basis respectively Yuan / ton, 148 yuan / ton and 162 yuan / ton.

        From a regional perspective, in August, CSPI’s six regional market price indexes all fell. Among them, North China and Northeast China decreased by 4.29% and 5.60% on a month-on-month basis, while East China, Central South China, southwest and Northwest China continued to decline, with a larger decline than last month, with a decrease of 4.34%, 3.84%, 3.36% and 4.31% on a month-on-month basis.

        According to CISA, the average daily crude steel supply in August was 2.679 million tons, an increase of 3.4% on a month on month basis. Crude steel production remained at a high level, and the pressure at the supply end increased. In addition, from the overall situation, the prices of iron ore and scrap steel dropped significantly, which weakened the supporting role of steel prices.

        For the future trend of steel price, CISA expects that the overall supply and demand of the domestic market will keep balance in the later period, and the steel price will fluctuate slightly.

        According to the analysis of CISA, the steel production will fall in September and October, and with the weather turning cold, the next two months will gradually enter the steel consumption off-season; the heating season is approaching, and environmental protection measures will be introduced in autumn and winter. In the later stage, the demand for iron and steel will gradually weaken, the output of iron and steel will also fall, and the overall domestic market will maintain a basic balance.

        CISA stressed that in August, the daily output of crude steel in China was 2.815 million tons, an increase of 2.4% on a month on month basis, and the overall capacity release was still at a high level. The iron and steel enterprises should strengthen the self-discipline of the industry, control the release of production capacity too fast, and maintain the stability of market supply and demand.

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