Supply: According to the "Beijing-Tianjin-Hebei and its surrounding areas 2017-2018 autumn and winter air pollution control tackles action plan" arrangements, the relevant cities in the north have introduced a specific policy to limit production. Taking Tangshan as an example, by the end of September, the Tangshan Municipal Government issued the Circular on Initiating Emergency Relief Measures to Cope with Severe Pollution Weather, and decided to launch emergency emission reduction measures in the city from zero on September 25 at the specific measures including The city's iron and steel enterprises shaft furnace, sintering machine limited production 50%; by the end of October, once again requested October 24 to 27 the city's steel enterprises using wet desulfurization sintering machine, shaft furnace all cut-off. Under this influence, the operating rate of steel mills is reduced, the overall resource surface is tight, the supply of steel products in the northern region is reduced, and the price willingness of manufacturers is relatively strong.

 

Demand: In the environmental impact of limited production, the downstream sites are also suppressed, especially the northern heating season, the frequent heavy pollution in northern weather, the most stringent stop order struck, the construction site phase down, the lower part of the small factory standard parts Production and other enterprises to reduce operating rates, the overall demand is difficult to achieve effective heavy volume, reduce the overall demand for steel.

 

Inventory: Up to the current statistics, this week thread social stocks 399.66, 27.7 less than last week; wire social stock 123.6, down 7.45 this week; this week 219.7 steel stocks, down 23.35 last week; wire steel stocks 51.08 , 7.27 less than last week. Steel stocks continue to decline, and steel production increased overhaul, manufacturers expected market outlook is good.

 

Overall, although the market is weak in both supply and demand, it can be seen from the above that the suppression on the steel supply side is greater than that on the demand side, and the winter heating season will limit the production to a more strict implementation. Under the condition of ascension, the supply of steel products will continue to decline. Meanwhile, the billet continued to rise slightly this week with strong cost support. Therefore, short-term market prices are expected to continue to fluctuate sideways.