The hottest profit space will eventually become a

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Profit margin will eventually become a springboard for steel prices

now, more than half of 2017 has passed. If we want to summarize the overall trend of the steel market in the first half of the year to meet the requirements of oil quality upgrading, the word "ups and downs" is enough to summarize. Compared with the end of last year, various varieties have risen and fell. Fortunately, the overall range is still controllable, but can the trend in the second half of the year still be optimistic

this year, the steel market trend of "long, strong and weak" is relatively obvious. Through detailed analysis, the price of plate in the first quarter was higher than that of long wood, and the price of long wood in the second quarter was higher than that of plate. The main reason is nothing more than that the "ground steel bar" is at work. It is a clear requirement of the state to ban all the "ground steel bar" before June 30. Coupled with the impact of factors such as accelerated production capacity and environmental supervision and production restriction, the supply of long materials is expected to be tight, the destocking effect of steel mills is remarkable, and the downstream demand, especially the real estate investment and infrastructure construction investment, continues to be high. However, with some steel mills switching to long products, the tension between supply and demand of long products has been eased, and the overall price has mostly returned to the right track. The price difference between long products and plates is gradually narrowing

from the perspective of supply and demand, in the first half of 2017, due to the rise in steel prices, the steel plant made considerable profits, and the profits of finished products were more than 1000 yuan. The production enthusiasm of the steel plant has always remained high. However, due to the acceleration of capacity removal, high-specification and high-frequency environmental protection supervision, environmental protection production restriction and other factors, the release of crude steel production has been limited to a certain extent, but it remains high. In the first half of this year, China's iron and steel de capacity work made rapid progress. At the end of June, the national iron and steel de capacity achieved the current annual target. In the first half of this year, a total of 111 million tons of coal production capacity was withdrawn, achieving 74% of the annual target. In addition, the inspection from the direction of environmental protection in the second half of the year will still be a sharp sword hanging over the iron and steel enterprises. The Ministry of industry and information technology also issued the 2017 national major industrial special energy conservation supervision task, of which 448 iron and steel enterprises were involved in the special inspection of energy consumption in the iron and steel industry. Cutting production capacity and energy conservation and environmental protection go hand in hand, which will help speed up the elimination of backward production capacity and the adjustment of production structure, and accelerate the layout of the steel industry. In addition, due to the upside down of steel prices at home and abroad and the upsurge of foreign anti-dumping sentiment, domestic steel exports continued to be low, while steel imports and exports also showed a downward trend, which affected the market atmosphere. However, the PMI index showed that the steel market transactions were relatively active, and the aftermarket was still expected driven by the good domestic economic situation

although the profits of steel mills are objective at this stage, it is unsustainable for steel mills to maintain high profits, "Shi Jianxin said. The improvement of the steel market situation is only temporary, and there is room for speculation in today's price rise. The fundamental reversal of the market situation in the steel industry has not yet been achieved. And with the arrival of the second half of the year, various macro-control will be mostly affected by the cold off-season and supported by high profits. In the near future, steel mills will step up production. How about the quality of market capital Jinan testing machine factory? The amount of source investment will remain at a high level. In addition, there will be no obvious release in demand in a short time, but in the long run, there is still support in demand. Under the influence of many factors, there will be a slight correction in the steel market in the future, and the market as a whole will return to balance with the fall in prices. The profits of steel mills will narrow, and the steel price does not have the conditions for a sharp rise. The possibility of cliff like decline is also relatively limited. It is expected that the second half of the year will be in the market trend of wave consolidation

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