Shanghai stock China securities network (reporter wang wenyan) rebar futures 23 to a big line closed, up to the day closed main contract up 3.6 percent at 3510 yuan/ton.On the same day, some steel mills in east China also rebar spot price for a small increase.
As for the price rise, market insiders told the Shanghai news that hebei, shandong and other places have issued severe pollution weather warnings recently, and the number of steel coking enterprises to suspend production increased significantly, which once again caused the market to reduce supply expectations, thus forming a certain support for the price of steel.
Reporters learned that many have issued control plans.On September 22, the office of severe pollution weather emergency working group of shandong province issued the letter on effectively handling severe pollution weather on September 25 solstice 29, requiring 13 cities in shandong province, including jinan, to issue orange alert and initiate level II emergency response.Among them, industrial enterprises are required to limit production and suspend production according to the newly revised emergency emission reduction list in 2019.Shandong area a number of steel mills will have confirmed that different proportions of production or even stop production.
On September 21, the tangshan municipal government issued a notice on air pollution prevention and control measures in September, requiring that the sintering machine equipment of tangshan steel enterprises be under strict control from September 22 to 27.
Regarding the following price trend, Mysteel analysts believe that production limit to a certain extent on the steel price support, also need to focus on the impact of the futures market on billet spot trading.
Analysts believe that despite recent more restricting output regulation increasingly strict environmental protection, city “26″ 2 + 2019 – comprehensive control of air pollution in the fall and winter of 2020 crucial action has also begun to ask for some advice, and the crucial actions are firmly opposed to limit production of environmental protection “one size fits all”, their effect may be not as good as expected, the release of steel production is still the main stress of the market.Although steel social inventory has been falling for 6 consecutive weeks, but the downstream demand has also been gradually slowing down signs, steel prices in the short term large probability will maintain shock consolidation situation.