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date    2016-11-30

Off-season steel prices are not cold. In the central and local governments introduced policies to stimulate the intensive, steel prices once again experienced a sharp rise, and hit a new high this year.
Institutional monitoring data show that on November 29, three rebar and hot rolled coil ten city average price of 3240 yuan / ton and 3638 yuan / ton, respectively, compared with the beginning of 65% and 78%, more than April 22-year high of the year.

The spot price of steel hot, mainly due to the impact of policy on the supply side of the steel market.

November 23, Chinese Premier Li Keqiang at the State Council executive meeting, solemnly pointed out that the current coal steel production capacity to work in violation of new production capacity, illegal production and other issues.

"For those who violate the law against the wind, you want to take the chest in the individual enterprises, should grasp the typical, serious treatment, can not let 'a mouse feces bad pot of soup'". Li Keqiang said that the State Council should send investigation team to investigate and deal with the phenomenon, using large data, remote sensing satellites and other means of real-time monitoring of new steel mills and other irregularities do not meet environmental standards, do not meet the national standards of backward production capacity "resurgence."

The next day, the State Council two investigation group went to China's largest two steel-producing provinces of Hebei and Jiangsu, the existence of the individual steel enterprises to investigate the top wind violations.

At 11:00 on November 24, by the National Development and Reform Commission deputy director Lin Nianxiu as the head of the investigation team arrived in Qinhuangdao City, Hebei Province, Changli County, Hebei Anfeng Iron and Steel Co., Ltd. conducted a field investigation. The company because of "not approved the first building, while the side approved the construction of steel projects", as the "typical" was named.

On the same day at 17:00, by the Ministry of Industry and Deputy Minister Xin Guobin as the head of the investigation team arrived in Xuzhou City, Jiangsu Province, three groups of three spot checks Xinyi City, nine companies. These small steel mills illegal production and sales "to steel" chaos, at the end of July this year by CCTV exposure.

Ground steel is the intermediate frequency furnace to scrap iron and steel melting, and then poured into a simple cast iron mold made of low-grade steel cooling. During which no analysis of the test, impurity, temperature and other quality indicators can not control, with this method of refining the steel products, most of the quality are substandard, a great security risk.

Although the production of hidden bar, the actual size can not be statistics, but the industry is expected to domestic steel production capacity of nearly 100 million tons.

November 28, Jiangsu Province held a government work conference, the emergency in the province to carry out "to steel" production enterprise regulation and iron and steel illegal production capacity clean-up work, will be directed at "the production of building steel for intermediate frequency furnace, frequency furnace ", Requiring a comprehensive dismantling within a week.

The so-called intermediate frequency furnace and frequency furnace, induction furnace is divided according to the type of frequency. Frequency is 50Hz or 60Hz, IF is usually more than 300HZ to 20KHZ. Compared with high-frequency furnace, frequency furnace and frequency furnace frequency is small, small size, production process is simple, low investment, which is small workshop-style steel companies to use.

Ministry of Industry in mid-November issued the "iron and steel industry to upgrade the planning (2016-2020)" special requirements, must be completely banned the production of "to the steel," the frequency furnace, frequency furnace capacity.

According to research institutions, intermediate frequency furnace steel most concentrated in the East China region, there are some in South and Southwest. Jiangsu Intermediate frequency furnace total capacity of about 37 million tons, the current production capacity of about 30 million tons. Among them, construction steel production accounted for more than 75%, mainly concentrated in the spiral wire.

However, IF furnace refining out of the steel does not mean "to the steel." "Many formal enterprises also use intermediate frequency furnace production." Analysts told reporters on the interface, if the composition is well controlled, intermediate frequency furnace production of steel quality than converter poor, in addition to phosphorus content may be slightly worse indicators, the same can meet the national standard.

Insiders also believe that the local government in the treatment of IF furnace on the issue should not be "one size fits all", should be planning approval, quality, safety, land, environmental protection, industry standards and many other aspects of comprehensive consideration.

Subject to environmental pressures, many domestic governments have been introduced steel production policy. At the same time, the Central Environmental Protection Group launched the second batch of environmental supervision during the year, one after another stationed in Beijing, Shanghai, Hubei, Guangdong, Chongqing, Shaanxi, Gansu seven provinces and cities, the corresponding steel mills will cooperate with the inspection work and stop production.

According to statistics, Wuhan, Xiaogan, Xiangyang and other places have six steel mills take the initiative to stop working with the Environmental Protection Group Inspector. These steel mills are the steel industry in Hubei Province to resolve the excess capacity target tasks other than the steel mills. If the cut-off period is calculated as a month, the total impact of building materials output of 400,000 tons, is expected to greatly reduce market supply.

Jiangsu Xuzhou, Suqian, Yancheng and other places have five steel mills take the initiative to stop production with the survey, affecting the average daily output of about 1.15 million tons, accounting for the current average daily production of steel in Jiangsu Province, 6%.

However, despite the supply side factors to promote the rapid rise in steel prices, the actual turnover was no significant improvement.

Data show that in late November the nation's construction steel volume fell sharply, the northern region fell by nearly 40%, the smallest in the South, but still reached 16%.

Taking into account the social stock since November 25 began to increase, and the north to accelerate the south, the impact of the South market, steel division analyst Jinxiong Lin is expected in early December domestic steel prices or finished lower.

Another analyst on the interface, said journalists, steel market will shock later.

"In fact, rebar is still in the state of micro-loss, steel prices have continued to rise in power." Analysts said that despite the demand in some areas into the absolute off-season to car as the representative of the industrial demand is still good. At the same time, to go into the acceptance phase of production capacity, illegal and environmental supervision increased, is expected to continue to decline in crude steel production chain so. High coke coke and rising iron ore prices are the formation of rigid steel support

so, many industries are effected.Meanwhile,the bearing prce is increasing sharply recently.

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