The reasons why the price skyrocketing
First of all, from
the perspective of environmental protection, in the near future, due to
the impact of heavy pollution, Zhengzhou, Zhoukou City, Xuchang City,
Lianyungang (601008, shares) and other places issued orange warning or
emergency response. A few days ago, the "Anshan City Heavy Pollution
Weather Emergency Plan (Revised Draft)" was released, and the number of
enterprises that restricted production and restriction was greatly
increased, from 15 to 471. With the recent increase in weather
pollution, the number of areas where production restrictions have been
issued has increased. Therefore, the intensity and scope of
environmental protection and production have increased, which has formed
a certain positive effect on the market.
On the demand side, on November 13, Premier Li Keqiang presided over the State Council executive meeting, which proposed to reduce the minimum capital ratio of some infrastructure projects, and to supplement the shortcomings of roads, railways, urban construction, logistics, ecological protection, social and people's livelihood. Infrastructure projects, which is good news for the construction steel market. In addition, at the meeting held by the State Council for three consecutive days, Premier Li Keqiang said that it would accelerate the construction of short-board projects to promote effective investment and industrial upgrading. Strengthen the planning and preparation of major projects and promote the early start of construction. As demand is expected to improve, there will be some support for the later steel prices.
Steel social inventories have also seen a five-week decline, which is now lower than the same period last year. According to the monitoring data of the Lange Steel Cloud Business Platform, as of November 15, the social inventories of steel in 29 key cities nationwide were 7.417 million tons, down 463,000 tons from last week, a decrease of 5.88%; 2.757 million tons, a drop of 23.2%; the current steel social inventory has been slightly lower than the same period last year. As stocks fall again and again, confidence in the market will have a positive effect.