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China steel price CIOPI 298.85 10, China’s iron ore price index, CIOPI311.62 13, China’s iron ore price index, or line 12.77, or fall by 4.27%. in 2017 the china steel material Price had Big Rising.  As the Chinese government to improve the requirements of environmental protection , the china steel price will have more rising.

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China Steel Sector PMI Indices 2017-02-08

Steel Market Prospect 

China Chicken start, steel market price is no very good, the spot market to maintain the weak callback majority, businesses wait and see atmosphere. In such a bleak start, we hope for the steel market in 2017 it?

Environmental protection law by accelerating the layout of steel prices in the future

After six years of legislative road, China’s first environmental tax law by the end of 2016 by the National People’s Congress Standing Committee. January 1, 2018, the country’s sewage enterprises will be no difference in the implementation of environmental tax liability, which has been implemented for nearly 40 years of sewage charges, will eventually withdraw from the stage of history.

From the “fee” to “tax”, environmental supervision will embark on a more standardized, equal road. For high sewage industry, the new tax law will also encourage enterprises to strengthen the layout of environmental protection, thereby accelerating the survival of the fittest. This is referred to as the “fog haze culprit” of the steel industry, the environmental cost of steel production costs accounted for a substantial increase in the proportion, further accelerate the industry survival of the fittest, the impact is particularly evident.

If the Environmental protection law get Strictly enforced. The steel price should have large rise in my position.

Good Bye 2016. Hello 2017!

The fourth quarter of 2016 coal demand gap of about 40 million tons, in a tight balance. In 2017, if the coal production from 276 days to open up to 330 days, then the coal supply will again be greater than the demand, the annual surplus or more than 100 million tons.
December 1, deputy director of the State Coal Supervisor Song Yuanming in the 2017 National Coal Fair mentioned the forecast. According to its introduction, this forecast is the State Administration of Coal Industry Bureau of Industry Management Department in conjunction with the relevant departments to make.
Song Yuanming said that the coal industry to resolve the excess capacity to implement the 276 working days to reduce production measures is a major change in coal supply and demand this year, the primary reason.
Earlier this year, China launched a steel and coal industry focused on the supply side of the two reforms. February 5, the State Council issued “on the coal industry to resolve the excess capacity to achieve the views of the development of relief” (hereinafter referred to as 7), a clear coal industry “to capacity” target: from 2016, with 3 to 5 years, Out of coal production capacity of 500 million tons, reduction of 500 million tons of restructuring.
7, the text set a strict limit production policy, that is, from 2016 onwards, all coal production in the country 276 working days to implement the production, the statutory holidays and Saturday and Sunday do not arrange production, which is equivalent to the previous year 330 Production was down 16 percent in the week. China’s total coal production in 2015 to 3.75 billion tons, 2016 annual implementation of the 276 working days policy, the annual output of about 600 million tons of coal.
Reduction of production has been strictly enforced. The first month after the promulgation of Circular 7, that is, in March this year, the national coal production fell by 4.5% year on year. April to October, the monthly raw coal production fell more than 10% year on year, in June to reduce the amount of 16.6%.
Although the demand side is also declining, but the decline is much smaller than the supply. China Coal Industry Association, Wang Xianzheng said at the meeting, the Association predicted that from January to October this year, the national coal consumption of about 3.13 billion tons, down 1.9%.
“Just one year, the coal market supply and demand there have been two phenomena,” Song Yuanming said, coal supply and demand from the beginning of the serious oversupply into supply and demand tight balance.
In addition to reducing production, 7 text also requires strict management of super-capacity production, crack down on illegal production, and further increase the intensity of law enforcement in the supply side.
Song Yuanming said that although the “go to capacity” as a whole is conducive to the safety of the coal industry, but in October, the coal market prices soared, resulting in the recent safe production situation is extremely grim.
Qinhuangdao 5500 kcal thermal coal prices from the beginning of 370 yuan / ton climbed to the highest point in early November 607 yuan / ton, or more than 64%, November 30 the index of 599 yuan / ton, still higher than the beginning of 60% . The interests of some coal mines regardless of safety-driven production of illegal production.
October 31, Chongqing Yongchuan Jinshangou coal mine gas explosion occurred in a particularly serious accident, killing 33 people were killed. 3 years and 7 months without major accidents in coal mine the longest historical cycle to an end.
Into November, the greater the frequency of coal mine accidents increased significantly. From January to November this year, a total of 22 coal mine accidents occurred in the country, an average of 2 months, but in November has occurred in 5 cases. On November 29, Heilongjiang Qitaihe City, a coal mine gas explosion occurred and triggered a coal mine fire, 22 miners have been trapped underground.
Song Yuanming pointed out that ultra-capacity production has always been a major cause of major accidents cause. 2002-2005 years, the coal industry there have been rapid growth in production triggered a major accident lessons.
At present, in order to meet the demand, the National Development and Reform Commission organized the implementation of legal compliance coal mine production release, from 276 days to 330 days. Song Yuanming said, according to the capacity of 330 days approved production is the bottom line and the red line, no breakthrough in any coal mine.

Once a decade to get out of the steel circle
“Production capacity is more and more, the more the higher the production.” This is the past decade the most typical portrayal of China’s steel industry.
From 350 million tons in 2005 to 800 million tons in 2015, ten years of rapid growth of China’s steel production. In the policy of the state on the steel industry, from the “elimination of backward production capacity” to “to production capacity” to “supply side reform”, the term policy changes more and more years, but the significance is very similar, that is, Reduced production capacity.
Perhaps many people can not imagine, as early as 2005, the National Development and Reform Commission had once proposed to the steel industry, “eliminate backward production capacity,” the request was “Eleventh Five-Year” period, China’s steel production capacity of 400 million tons, 100 million tons behind the iron-smelting production capacity and 55 million tons behind the steel-making capacity. “However, less than a year, steel production quickly exceeded 400 million tons. Since then, to go with the development of iron and steel industry production capacity, is mentioned every year, every year on the suppression of the steel industry production capacity of the “red tape” introduced, but the steel production capacity is constantly expanding the road gone.
Until 2015.
2015, China’s steel industry is a turning point. The country’s crude steel output in 2015 was 804 million tons, down 2.3 percent year on year, the first time since 1981, the annual decline. The actual consumption of steel 664 million tons, down 5.4%, the first decline in 1996. The reason why such a turning point, and the industry itself is inseparable from successive years of losses. 2012, 2015, the steel industry long-term loss, the profit margin of the main steel industry when the minimum even less than one percent.
Iron and steel industry to the true sense of the capacity to the first year
In 2016, with the general direction of supply-side reform, the focus of the policy is tilted from the demand side to the supply side. To promote the supply side of structural reform, the focus is to capacity. Unexpectedly, the steel industry is still “go to capacity” in the wave of carry handle. According to the plan, China will be in five years to reduce crude steel production capacity of 100 million to 150 million tons. Which is the task of steel production capacity this year is 45 million tons.
From the beginning to date, China’s steel exports have suffered many sanctions, China’s steel production capacity to the issue and even rise to the impact of international trade relations of the important position, so that the Ministry of Commerce, and even national leaders many times for China’s steel industry to production capacity Made an explanation, but also for the first time the establishment of an international cooperation team on the steel production capacity of inspectors. Domestically, from the provinces and autonomous regions have released specific targets to the capacity to the central one week will focus on steel production capacity to the issue, to the National Development and Reform Commission to the monthly production schedule to publicity. Tension atmosphere seems to let us glimpse a trace of the feeling is not the same as in previous years, that is the real sense of the steel industry to production capacity, began.
According to the Ministry of Industry and the latest data show that from January to July this year, 28 steel-producing areas and central enterprises to complete a total reduction of steel production capacity of 21.26 million tons, accounting for 47% of the annual task volume. From January to June of 13 million tons to 1 – July of 21.26 million tons, to significantly speed up the production capacity.
From the Development and Reform Commission announced the progress of the situation, as of July, Zhejiang and other four provinces have completed the annual task; Hebei, Liaoning and other eight provinces in the progress of 10% -35%; more than 10 provinces to resolve excess steel production capacity The work has not yet been substantially initiated. A few days after the announcement, Hunan Province announced the completion of the steel production capacity in 2016 ahead of schedule. Subsequently, Baosteel, the dominant steel producer in China, announced ahead of schedule the completion of this year’s production capacity of 3.95 million tons.
In the just-concluded coal and steel industry to resolve the excess capacity and the work of the development of inter-ministerial joint meeting, called “all over the country shall not in any way any way to record the new capacity of steel projects, all filing iron and steel projects must implement capacity replacement targets, Within three years to stop the approval of new coal projects, new capacity of technological transformation projects and production capacity of nuclear projects, and resolutely prevent the production side edge reduction.
Can be seen in the steel industry to the process of production capacity, “control increment” and “clean up the stock” is at the same time.
To the process of difficult
However, can not be ignored is that for ten years did not “go to” the success of the steel industry, the reduction of crude steel production capacity of 1-1.5 million tons of difficulty is undoubtedly enormous.
The first is the temptation of profit. The iron and steel industry can accumulate into today’s huge pattern, the golden years of verification of the once high profits. However, after four consecutive years of losses, the steel industry in the first half of 2016 miraculous profitability, and steel prices have returned to the soaring, a direct result of the output of another major outbreak. Development and Reform Commission head Xu Shaoshi said this, the first half of steel consumption fell 2.7 percent, coal consumption fell 5.1 percent, does not have the basis for continued price recovery. However, the temptation of profit is undeniable as this year’s production capacity to stumble.
In the temptation of profits, the steel industry for many years also derived from another problem: the net is not clean to the steel, is for many years to “production capacity” of the hidden dangers. Just like waste oil, black workshops, to the quality of steel products, but unqualified high profits, the interests of complex chain, very strong covert, a huge number. According to previously reported data, China or the existence of more 80 million tons of steel production capacity. July CCTV had exposed the illegal production of steel to the issue of Jiangsu Province, Jiangsu Province in early August this year issued a strict and resolutely banned “to build steel construction timber” production and sales notice. But many of the steel companies are very subtle, and some even the name of the word is not steel, leading to law enforcement sector management difficulties, but from the past method, the inspection power consumption is to find out the steel companies to a very effective method . Such as the provincial government of Jiangsu Province, the provincial Development and Reform Commission, the Public Security Department, the Environmental Protection Department, Trade and Industry Bureau, Quality Supervision Bureau, Safety Supervision Bureau, power companies and other departments and units jointly participate in the special inspection team, the production and marketing of municipal production Sales for the net-type investigation, it is expected to crack down on the fight against an effective bar.
Followed by the steel industry before the exit mechanism is not perfect. Iron and steel industry is capital-intensive, the threshold is not high, but the exit is difficult. Expensive equipment, personnel placement, capital and debt are leading to iron and steel enterprises can not easily and can not “exit” reasons. This situation is gradually improving, this year the country 8 ministries and commissions continuous introduction of the policy for the supply side reform “escort”, the enterprise funds, personnel flow and a series of issues to make a guarantee. In addition, the state has to go to the production capacity of enterprises to provide more support and broaden the way out. On the issue of debt, the debt-to-equity swap program is being studied and perfected, and there are rumors that the debt-default-ridden Sinosteel Group’s debt-to-equity swap program has been submitted to the State Council; Reform, the Henan Province to determine the 8 steel and other state-owned enterprises as a mixed change pilot and so on.
From the experience of the past decade, China’s steel industry to rely solely on the leverage of the market economy to adjust has been difficult to play a role. This is now a massive momentum to the production, the concentration of a strong policy, combined with all law enforcement agencies, from the central to the local government responsibility details, layers responsible for the place, the history of the most stringent production capacity to the industry must be subversive pain. Indeed, in 2016 can be said that the steel industry in the true sense of the capacity to the first year. The first year, on behalf of a new start, it is worth looking forward to all.

China steel plate price rise 30~100 USD per Tons at 2016-11-08

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Hangzhou G20 summit was concluded on the 5th summit fruitful. September 3, President Xi Jinping attended the Group of Twenty in Hangzhou Business Summit opening ceremony and delivered a keynote speech. President Xi Jinping introduced, beginning in 2016, we are vigorously promoting supply-side structural reforms, the initiative to regulate supply and demand, and then use the five-year period Yajian crude steel production capacity of 100 million to 150 million tons, with 3 years to 5 years then exit the coal production capacity of about 500 million tons, about 500 million tons reduction restructuring.

President Xi stressed that China in terms of capacity to go, with the largest, the most practical measure, when it comes it will be done.

Earlier most companies are held as guarantee a smooth and successful implementation of the G20 limited production, cut or even stop, we continue to follow this investigation of the 32 steel producers, whose production complex situation.

1, steel enterprise in Zhejiang Province has been fully resume production, 7th basic equipment has been debugged, 8 production will return to normal. At present steel basically has resumed production, and ST 8 TLFX resume production, WXXSZ still limited production 30%, JS Shagang still one thread production line maintenance, JSYG continue to blast off the wind, the production line is restored.

2, the yield point of view, compared to the actual impact mill is expected to reduce the amount of influence, mainly individual mills to limit production and cut some discounts, but the overall amount is still affect the supply of one million tons, but some intermediate frequency furnace steel production is mainly unsaturated cause.

3, the current 32 steel producers inventories totaled 621,600 tons, an increase of 11,900 tons compared with the previous survey period, the main part in the market in Hangzhou and Zhejiang-based mini-mills and Hangzhou in Zhejiang province since the sharp drop in demand, It led to the emergence of inventory backlog, little change in other mills.

4, currently 32 steel producers of rebar yield of 78.1%, the chain increased by 30% compared with last week. Steel production has been fully restored and is part of Nissan mini-mills can be also increased.

5, the current total inventory of rebar in Shanghai, Hangzhou, Ningbo, Wenzhou, Taizhou and Nanjing, Wuxi, Suzhou is to 1.1316 million tons, the chain increased 35,400 tons more than last week, except Wuxi inventory reduction, other regions have experienced increased inventory . In addition, complete statistics are currently in Hangzhou steel stocks 556,800 tons, 60,530 tons plate, screw, wire 61,280 tons.