End users have some resistance to high-priced resources of ductile iron manhole covers
The operating rate in Tangshan area was 72.56%, a rise of 1.83% from last Friday and 6.1% lower than the same period last year. A total of 2 blast furnaces were inspected this week, and 12 blast furnaces resumed production. The resumption of production was mainly concentrated in North China and Northeast China. At the same time, 3 large blast furnaces with a volume of more than 2,000 cubic meters were resumed this week, but most of them resumed production recently. The downward supply pressure is increasing. In addition, the average daily crude steel output of member companies in mid-April was 1.91112 million tons, an increase of 1.87% from the previous month, a record high.
This week, there are signs of environmental protection and production restriction. Handan City proposed to reduce the iron and steel production capacity by 1.51 million tons and steel production capacity by 300,000 tons by the end of August 2018; formulate the exit and relocation plan of Hansteel and implement the coking and relocation of the eastern district in 2018 , And strive to withdraw at the end of June 2019; Tangshan released a pre-warning plan for severely polluted weather, and the sintering machine production limit on May 11-14 will be 50%. In addition, from May to June, the Development and Reform Commission will organize a special spot check on the iron and steel industry to resolve excess capacity and prevent the resurgence of "strip steel".
Demand continues in the peak season, and policy benefits are on the way. With the coming of the rainy season in the south, coupled with the high prices, end users have some resistance to the high-priced resources of ductile iron manhole covers, and the transactions have obviously weakened compared to the previous period. Judging from the Shanghai Stock Exchange purchasing situation, the last two weeks have remained low, not the strong momentum shown in the previous three weeks.