Predict of steel price

As the cost of steel is still strong support, the current tight supply of coal has not eased, steel stocks are generally low, coal prices are still rising in short term. The stock of Iron ore at port is in at a high level, but the high-grade resources are still tight structure, coupled with the RMB is still in the depreciation of the channel, ore prices are difficult to significantly decline. The cost of steel mills will remain at a high level, the formation of favorable support for steel prices; but the space to rise price sharp is small if want to continue in a short term. But be subject to cost support, the mainstream steel mills continue to rise in December offer, business costs continue to remain high. In addition to the good expectations of environmental protection to reduction, the business mentality is acceptable.

Subject to environmental upgrades, some steel mills stop production, the intermediate frequency furnaces in Jiangsu, Shandong shutdown, and a lot of provinces and cities in the northern part start heavy polluting weather emergency response measures, recently the investigation teams check the problem of enterprises who commit a crime in spite of a law-enforcement campaign. So can expect parts of the illegal new capacity will face the possibility of removal later, crude steel production will remain in a downward trend, which will support the steel prices to rise.