INDUSTRY NEWS
Latest news on June 25th
On Sunday, the Tangshan Municipal Government suddenly issued a production restriction document requesting that from June 24 to July 31, most steel enterprises in Tangshan should have a limit of 50% or more of sintering, blast furnace and converter, and a limited number of steel enterprises would limit production by 20%. According to the reporter of the Futures Daily, some steel mills have received government-restricted production documents. This policy has caused an uproar in the market, injecting a shot of heart to the spot market that continues to be sluggish.
Affected by the limited production of Tangshan, the billet continued to rise by 50 after a rise of 70 last weekend, a total increase of 120 yuan to 3,580 yuan / ton; 33 steel mills rose, the highest increase of 140 yuan / ton; Ruixing / Ruilong channel steel Up 90-140 yuan / ton, a number of building materials raised 50-100 yuan / ton. As of the close of the afternoon of June 24, thread 1910 closed 3904, up 2.31%; hot coil 1910 received 3846, up 3.69%; iron ore 1909 closed 814, down 1.09%; coke 1909 closed 2082, up 0.39%; coking coal 1909 closed 1376, down 0.94%.
Looking back over the past month, Tangshan's production policy has gradually increased: from June 13th, the independent rolling mills in Fengrun District have cut off electricity; on the 16th, the steel mills are required to sinter 50%, and some steel mills strictly enforce them, but due to steel The plan for the production of blanks and preparation for sintering to meet the limit of production has not had a significant impact on the blast furnace. The operating rate of blast furnaces in Tangshan is close to 70%.
Due to the power outage of the independent rolling mill in Fengrun District, the downstream demand for billet dropped sharply, and the billet price dropped sharply. The lowest price in the week last week was 3,410 yuan/ton. However, driven by the futures market, billet prices rebounded at a low level, and the rebound in prices drove the market to bottom-hunting behavior. After the price fell, the profitability of steel mills shrank sharply. Some steel mills stopped exporting billets into stocks, and the sales volume decreased and the market low-level active replenishment operations. It also supports the billet price to a certain extent. Before the steel mills implement the production limit, there will still be room for the price of the billet in the short term, and the implementation of the limited production will bring the market price up. However, the steel market is still unable to get rid of the off-season fundamentals, so it is necessary to be cautious after the price continues to rise, due to the price drop caused by the demand side.
Beijing time on June 24, the US Supreme Court refused to challenge President Donald Trump's more than $4 billion in steel tariffs, dismissing an appeal to question his national security as the legal basis for his trade agenda. US stocks and steel stocks fell, steel stocks leader Hezhong Steel fell 0.44%.
Recently, according to foreign media reports, US steel prices seem to be affected by 232 tariffs, tinplate prices are rising sharply, tinplate manufacturers will reflect price increases in negotiations with customers in 2019.
It is reported that since the price of hot rolled strip of raw materials for tinplate production has increased, the price of tinplate in the United States has increased by more than $350/ton since last year. US tinplate manufacturers will begin negotiations with customers on prices starting in 2019 this fall. They will ask for a 50% price increase when the tinplate price is at a high market level and a 30% price increase when it is at a low market level, which is in line with the price increase of hot rolled products.
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