The steel price oversold rebound in iron and steel enterprises expansion increased enthusiasm

  In September, the steel price oversold rebound stimulation, again to expand production of iron and steel enterprises. The latest Xunbao Chinese Steel Industry Association show that in early October, CISA member enterprise daily crude steel output 1 million 584 thousand tons, year growth of 4.9%; the estimated output was 1 million 916 thousand tons, year growth of 4%. Analysts said the increase in crude steel output is mainly in the steel prices rebounded sharply in September, steel production and business conditions improved. Steel city in September after the “revenge rebound”, the domestic production of many steel mills have a certain profit space. According to the latest research shows that the level of profitability of the steel mills, 163 of the surveyed steel mills, the loss has reduced to 10.49%, nearly 9 of the steel enterprises profit. “Steel, coil based varieties of gross profit per ton up to 300 yuan, to stimulate the enthusiasm for production of steel. In early October, the effective volume of 148 blast furnaces started to rise to about 92%. At present, the size of the domestic steel mills are improving profitability is expected throughout the October crude steel production rose to 1 million 910 thousand tons ~195 tons.” Analysts said. Although steel prices rise, the yield rise, but due to the downstream demand has not improved significantly, the industry for the future development of the iron and steel industry is still not optimistic. “From the downstream demand, the basic situation of the steel industry has not changed, so the future of steel prices may also be down, but will not fall to the previous low.” Analysts believe that the future profitability of the steel enterprises, although not as good as the end of 9 or October, but it will be stronger than the three quarter, the market will maintain the overall profit status. In the sharp rebound in steel prices rejoice over, still need to be wary of the supply pressure to continue to pick up the supply of domestic steel market in November will be the policy side and the supply and demand side to start the game.

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