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Tangshan will be unsealed soon? Good or bad, the cost is difficult to fall in the short term
【Time:2022-04-06 16:57】 【Traffic:

 Tangshan will be unsealed soon? Good or bad, the cost is difficult to fall in the short term

At 8:00 p.m. on April 3, the Hebei provincial Party committee held a video conference on epidemic prevention and control. The Secretary of Tangshan Municipal Party committee made a detailed report and applied for the date of closure. The instructions were divided into two points: 1. On April 6, an expert team was formed to study and judge the epidemic situation in Tangshan. If there were no positive cases, the conditions were met. It was agreed that at 0:00 on April 8, the seven districts of Lunan, Lubei, Gaoxin, Kaiping, Guye, Fengrun and Fengnan would be opened locally. 2. On April 11, the whole area of Tangshan was unsealed. Restore normal management. However, we must strictly guard against it, especially the airport, high-speed railway and highway. Medium and high-risk personnel such as Shanghai and Jilin are absolutely not allowed to enter.

Many small partners panic. Does the unsealing of Tangshan mean that the outward transportation of raw materials is smooth and the price of raw materials in a large area collapses? We must make clear the logic of this round of finished product rise. The rise is caused by imported inflation. Demand is falsification. Cost support is also there in the short term. It can't fall anywhere. In addition to the sharp weakening of costs, this is the focus. When Tangshan was unsealed, the output increased more than the demand, but whether the raw materials can be transported into Tangshan, whether the electric furnace and rolling and binding material factory have profits, and how much the output will increase in the short term are the key points. Even if the traffic in Tangshan is restored on the 11th, the short-term blast furnace and electric furnace will not resume saturated production in a large area. Even if the production is gradually resumed at the end of April, it is also good for the price trend of raw materials, and the risk of sharp price decline is small.
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