Loss-producing steel plant enthusiasm for post-holiday restoration

After the Spring Festival, the steel mills resumed production and production, and were stockpiled for the “Golden Three Silver Four”. After the Spring Festival in 2015, the production of steel mills was not so active, but some of the larger loss-making steel mills accelerated their production cuts.

According to the latest research data, as of March 6, among the 163 sample steel mills surveyed, 56 steel mills were inspected for blast furnaces, the blast furnace operating rate was 84.94%, a decrease of 1.24% from last week, and the blast furnace operating rate continued to decline.

"Inventory pressure is too great. The steel mills basically have not resumed production after the holiday." Xuhui Min, a ferrous metal researcher at Huatai Great Wall, told the ** Daily reporter.

The latest data released by the China Iron and Steel Association shows that in the second half of February, the key steelmakers produced 1.77 million tons of crude steel per day, a substantial increase of 133,400 tons from the previous ten-day period and an increase of 8.15% month-on-month. The inventory of key enterprises was 17.1279 million tons, an increase of 66.12 points compared with the previous period. Ten thousand tons, an increase of 4.02%, and has continued to increase in sixty.

"Converted into steel production, steel mills have about 10 days of steel inventory, which is at the highest level in the same period in recent years." Xu Huimin told reporters that due to almost no demand during the Spring Festival, steel mills have high steel stocks and increased sales pressure. The willingness to resume production after the year is generally low.

According to feedback from steel companies in Hebei and other places, production lines before the pre-holidays production cuts in the northern region are still not being remanufactured. “If spot prices continue to fall, mills may continue to increase their production cuts.” Latest survey data show that last week The maintenance of major steel mills in the northern region remained unchanged from the previous week, and the steel mills in all regions maintained overhaul.

"The construction of the construction site after the Spring Festival this year is actually much worse than expected before." The analyst said.

Xia Junyan, a senior researcher of Everbright Mine Steel, told reporters that the current slower-production steel mills are mainly steel mills with large losses and outstanding sales pressure, but this proportion is not very large. However, he also mentioned that although the production of crude steel in steel mills is increasing, in fact, they have not produced so many steels, and some steel mills have even experienced recessive production cuts.

In fact, in addition to the pressure on stocks, the steel mills are not the main factor in making money. “Now the steel mills have lost a large area, and the production enthusiasm of private steel mills is not high.” Analyst told reporters that the current billet price has dropped to 1960 yuan / ton, the billet plant has produced more than 200 yuan per ton of billet losses, The loss of the whole process steel plant is also 100-150 yuan / ton.

According to reports, at present, the losses of some mills with relatively serious losses in the north have reached 300 yuan per ton of steel. “Some steel mills are in debt, and their capital costs are high, up to 100 yuan/ton,” said Xia Junyan.

According to the survey data of 163 steel mills across the country, as of March 6th, the loss of the steel mill has reached 79.75%, and the loss surface has continued to expand over the previous week.