The environmental pressure effect, the blast furnace operating rate dropped significantly last week. According to Mysteel statistics, last week the national sample of 163 steel blast furnace operating rate of 75.83%, than the previous week dropped 0.69%; 72 samples in Hebei steel blast furnace operating rate of 79.68%, than the previous week down 1.59%. The 139 main building materials plant last week steel production was 3 million 10 thousand tons, down more than 3.32% cycles; the operating rate of 73.8%, than the previous week down 4.2%.

On the current situation, is now part of mills receive notice, but not all production, there are still individual mills in production enterprise. Since the environmental protection policies have been introduced, Tangshan area dispatching billet and furnace manufacturers operating rate has been at a low level. At the same time, affected by the recent shipments difficult, some steel mills have independently increased efforts to limit production, the medium frequency furnace to capacity effects have not been evident.” Zhang Congcong said.

According to statistics, the Tangshan area of the intermediate frequency furnace, related products are mostly steel, plate, steel and other building materials, which relates to an annual production capacity of about 12 million tons. Zhang Congcong pointed out that the latter point of view, if the complete closure of the local electric enterprises, to the local, will reduce the impact of Dachang enterprises building materials market, reduce overall supply, supporting the market price; at the same time, the relevant message capacity to support market confidence, pushing up the market price; furthermore, easy to cut scrap purchase price to reduce the production cost. At this stage the price pull up, market speculation suspects, in steel production has not eliminated the implement at the same time, there is a certain risk.

Golden State Securities analysts believe that last week the second batch of environmental supervision in Jiangsu and other places open superposition of intermediate frequency furnace demolition operations, coupled with the end of plant maintenance increased, leading to a national blast furnace operating rate of return low (lower than the same period last year), steel production decreased to a certain extent the hedge effect of off-season demand. Therefore, the recent steel prices are still relatively strong, always maintain a good level of gross margin, with the impact of event depth, steel prices will remain volatile situation.

The internal game intensified