Baosteel raised its October price, Hebei Iron and Steel and Shagang have all been raised, Angang and Wuhan Iron and Steel will follow up
In this round of steel prices triggered by the energy-saving and emission-reduction storms, the big steel mills received the price increase "battery stick" as scheduled. Yesterday, Baosteel announced its product price policy for October, and its mainstream products rose by 110-300 yuan per ton. The industry expects prices of other major steel mills such as Angang and Wuhan Iron and Steel to increase. Previously, Hebei Iron and Steel and Shagang both raised the latest product prices.
According to the price of Baosteel in October, the low-carbon steel, ultra-low-carbon steel and general cold-formed steel of the hot-rolled products were raised by 300 yuan/ton, and other varieties were raised by 150 yuan/ton. Ordinary cold rolling is raised by 110-200 yuan/ton, hot-dip galvanizing is raised by 260 yuan/ton, high-end products without orientation electrical steel is raised by 350-380 yuan/ton, and thick plates are generally raised by 150 yuan/ton.
In addition to the demand for the traditional peak season in the fourth quarter, the price increase of Baosteel is undoubtedly the most important reason for the energy-saving and emission reduction storms in Hebei, Shanxi and Jiangsu. At present, the decline in production caused by energy conservation and emission reduction has not been clearly reflected, but the expectation of reduced supply and support for steel prices has increased. Hu Yanping, an analyst at Union Steel, said that China's crude steel output in September will be reduced by more than 5 million tons from the average monthly output of the previous eight months, and the daily output will be reduced to less than 1.6 million tons, with a preliminary estimate of 1.52 million to 1.57 million tons.
Hebei Steel, which is in the midst of the storm, announced today that the three branches of Tangshan, Handan and Chengde have successively received notifications from the local government on the restriction of production and electricity. According to preliminary calculations, the limited production of the three branches affects the company's crude steel from September to December. Production is reduced by about 1.5 million tons, accounting for 6% of the company's annual plan for crude steel production.
While steel mills are passively limiting production, downstream industries are increasingly demanding raw materials, including steel. In August, the main raw material inventory index of the main steel industry was less than 50%, and it was much lower than about 60% in March, indicating that the raw material inventory is still at a low level, and the major orders index of several major industries such as machinery in the steel industry. Both rebounded, and some even exceeded 60%.
The price increase will obviously also partially improve the profitability of steel companies. According to the statistics of China Steel Association, in July, the total profit of 77 key large and medium-sized steel enterprises was only 2.86 billion yuan, a decrease of nearly 50% from the previous month. The profitability in August was still not satisfactory.
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