Go to the production capacity of 50 million tons Or will boost steel prices higher again

Last week (March 3 - March 10) steel index fell shock, on Friday closed at 3880 yuan/ton, down 50 yuan/ton a week. Relevant data show that domestic steel prices last week in addition to the south China market rose in a falling market, prices declined across other areas.

Steel spot and futures shock last week fell, then the steel price trend this week? Said minister of ministry of industry and iron and steel production capacity of 50 million tons, not including DeTiaoGang, to strength capacity than expected? Bureau of statistics said the economy 1-2 month, can boost market confidence? Before getting into this specific discussion, first look at the related inventory data together.

1, Stock analysis

Monitoring data showed that the current Shanghai construction steel stock total scale of 364000 tons, 34500 tons less than the previous. Last week as the steel prices to fall, the downstream users generally reduce procurement, monitoring line of Shanghai screw terminal purchases last week fell 30.75% month-on-month data, stock market decline eased a week earlier.

2,The summary analysis

On March 11, minister of the ministry MiaoWei said that this year the government work report of 50 million tons of steel overcapacity goals do not include DeTiaoGang. Senior government officials level first clear iron and steel production capacity to 50 million tons this year, not including DeTiaoGang, means that this year's steel production capacity to the strength of the influence of the production capacity will be significantly greater than last year, the domestic steel price trend will form a significant boost. The short-term domestic steel price or is expected to shock is high.

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