High steel prices, high profits in the steel industry

Today, the main thread continued to rise, many times hit intraday trading, reaching a new high in ne-arly four years. Screw up the entire steel plate continued to rise, the steel industry performance rev-ersal become common understanding.

On the other hand, the total stock of steel society fell, the overall stock was low. Total steel inventori-es declined by 57 thousand tons this week compared with last week. Among them, the social stock -of rebar and wire rod fell 19 thousand and 800 tons and 41 thousand and 100 tons respectively last week, and the stocks of hot-rolled coils fell by 23 thousand and 100 tons compared with last week. From the steel stock data po-int of view, as of Friday, Mysteel survey of 216 steel enterprises in the factory inventory decline in J-uly compared to 1.7%, of which rebar and wire stock in the factory have declined. In the steel produ-ction rate has been at a high level, the overall stock is still in low shock, the overall off-seasn dema-nd is not weak.

In recent years, under the background of structural reform of supply side, the market clearing of ba-ckward small and micro enterprises, the administrative banning, superposition and merger of illegal enterprises have raised the concentration of industries. As of June 30, 2017, the annual production capacity of 1.2 tons, annual output of 60 million tons, the number of enterprises more than 500 ent-erprises have all been banned to bar. This not only eliminated a large number of backward producti-on capacity, improved the concentration of industries, but also cleared the market. Continue to pro-mote the supply side structural reform since 2016, the main products related to iron and steel pricesare also rising, only from the main varieties of futures, since 2016 rebar futures main contract cumu-lative rose sharply over 100%, so the first half of 2017 the steel industry overall brilliant performanceThe supply side starts to ascend, and a little increment of electric steel, environmental supervision, -stop production a series of strikes, but the demand side traders may open up the library, then into t-he season, is expected to supply and demand better, inventory pressure, steel prices are still supp-orted. Steel price adjustment continued, profits continued to rise. This week, a number of steel mills- on the construction of steel, hot-rolled coil, cold-rolled coil, plate and other prices up.