Xiaogan Bridge Drain Pipe Manufacturer Cast Iron Drain Pipe PVC Drain Pipe

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　　Xiaogan Bridge Drain Pipe Manufacturer Cast Iron Drain Pipe PVC Drain Pipe

　　After the Golden September and Silver October, the domestic demand for steel has shown great resilience. With the acceleration of the terminal construction industry and the overall recovery of the manufacturing industry, steel mills have saturated orders, and the operating rate continues to remain at a high level, resulting in strong purchasing demand from steel mills.

　　After the implementation of the Australian coal import suspension measures in October, the main coking coal resources became increasingly scarce, and the expected price rose first. The policy of reducing coke production capacity in many major provinces is gradually being promoted, and the environmental protection production restrictions of coking enterprises in major regions during the heating season are also relatively strict. With strong expectations of tightening coke supply, coke quickly took over the responsibility of leading the black market, and the end also quickly achieved seven rounds of price increases.

　　As December approaches, the Australian and Pakistani iron ore markets have not increased their outward shipments as previously expected to achieve their annual shipping targets. On the contrary, Vale has lowered its iron ore production targets for 2020 and 2021. In addition, after the improvement in Europe and the United States, the demand of overseas steel companies has recovered, and a large amount of high-quality ore has been consumed, which has led to a severe structural supply shortage situation while diverting the iron ore originally shipped to China. Steel mills choose medium and low-quality ores, which require more consumption of coke. However, coke prices are high, and bankrupt steel mills prefer high-quality iron ore. This cycle ultimately drives up the prices of all raw materials significantly, even scrap steel has risen above 3000 yuan/ton.

　　Currently, after the continuous introduction of risk control measures by major trading firms, they are also soliciting opinions on urgently expanding delivery targets. In addition to policy regulation, the China Iron and Steel Association is calling for joint negotiations between steel mills and mainstream Australian miners on pricing issues. This week, the daily average volume of iron ore at the port has dropped to below 3 million tons, hitting a new low in two and a half months. The situation at the port has significantly improved, and the inventory of iron ore at the port has still increased to 1240.445 million tons, but still lower than the same period last year. The domestic iron ore production in November hit a new low in four months. The National Development and Reform Commission also urges the lifting of coal import restrictions except for Australian coal, but coke enterprises have a high goal of reducing production capacity. Even if the supply of coke coal increases, coke output may still be limited.

　　Looking ahead to the future, steel mills usually need to increase their iron ore inventory to around 25 days one month before the Spring Festival, and their procurement of coke continues to remain positive, which means that the cycle for steel mills to replenish their main inventory of raw materials has not yet arrived. Unless the extremely cold weather significantly affects downstream construction operations or policy risks exert strong pressure, the current pattern of weak raw material supply and strong demand is difficult to change, and there will always be strong price support for finished products. Although Tangshan steel billets have risen to 3730 yuan/ton, profits have been largely consumed by raw materials. If steel prices stagnate and result in losses or partial production cuts, it will also help stabilize steel prices.

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