Production cuts increase! Steel prices still rise!

The global market generally rose, the international oil price rose collectively, the domestic commodity futures rose most, intra-day steel continued high, by the Ministry of Commerce’s statement to expand domestic demand new policies and more provinces in the domestic steel production limit policy favorable impact, steel prices received support, spot part of the market to follow up.

According to relevant data, this week the United States hot rolled coil prices hit a new high, the factory price has reached 2000 dollars/ton, and the current United States domestic steel orders in August full, a few have even row to September, the rise in international steel prices to help promote the domestic market higher.

After Anhui and other provinces clear reduction of output, Shandong recently issued a document, clear crude steel output this year does not exceed 76.5 million tons, requiring steel enterprise output in 2020 as the basis, comprehensive consideration of capacity utilization and other factors to reduce, determine the output control target of each steel enterprise.

To sum up, the current demand is still not smooth, but with shandong and other regions to cut production clear, production restrictions further increased, steel price will increase, and the international steel prices rise, the strength of bulk commodities also further drive the domestic market bullish expectations. Therefore, steel prices are expected to rise.