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The current sharp rise in steel prices is not due to changes in supply and demand

According to the China Iron and Steel Industry Association news, for the recent black futures market and steel listed companies stock price "transaction" to promote the steel spot market prices higher phenomenon, August 9 to participate in the China Iron and Steel Industry Association meeting that the current steel futures The price increase is not caused by changes in market supply and demand, but part of the agency to the production capacity, clear the "land of steel" and environmental protection and other policies over-interpretation and misreading caused.

It is reported that the China Steel Association invited some of the iron and steel enterprises, futures exchanges, futures companies, steel and electricity and information companies and other representatives of the joint analysis of "transaction" reasons.

Participants agreed that the current sharp rise in steel futures prices is not driven by market demand or reduced market supply, but part of the agency to the production capacity, clear the "steel" and environmental supervision and 2 +26 urban air pollution control Plans to conduct an excessive interpretation, or even misreading, especially in the second half of the impact of environmental impact will result in a substantial reduction in the supply of steel products, steel prices but also "soaring" extreme judgment. This kind of market situation judgments undoubtedly enlarge the environmental protection and other relevant policies for the impact of market supply, is one-sided, is alarmist speculation behavior, inevitably from the profit of the suspect.

A similar situation has already occurred in early 2017. 2017 early, because the complete ban on the "land of steel", the market has been a wave of speculation, in order to push up steel spot, futures prices and import iron ore prices. Iron and Steel Association held a part of the long-term business forum, the company through the correct judgment to stabilize the market. The fact that the supply and demand of the steel market in the first half of the steel market was basically stable further confirmed that there was no tight supply and soaring steel prices due to the ban on "steel bars", but to release the production capacity through the compliance enterprises to meet the domestic demand and maintain the stability of the market 

The meeting believes that the market is now taking environmental policy to say things to the argument, to harsh environmental policy as a basis for a virtual iron and steel enterprises will be a large area of ​​production limit production, which led to supply and demand sides of the second half of the steel supply and demand concerns. To the depths of thought, this speculation or to give up the negative impact of steel production capacity. The city of air pollution prevention and control plan is in the haze weather on the region to stop production enterprises to stop production measures, and can not be equivalent to a direct impact on 50% of steel production; Second, the iron and steel industry, iron and steel enterprises do not understand the status quo of environmental protection, the current majority of member companies to achieve environmental protection standards in general no problem; three do not believe that the local government to scientific and fair implementation of environmental policy.

Participants said that the iron and steel enterprises will further increase investment in environmental protection, to make new contributions to improve the environment. Believe that the local government will not be environmentally friendly enterprises to take "one size fits all" cut off production measures. As a result, severe environmental policies have limited impact on the steel market supply. Can not talk about environmental protection, vegetation are soldiers.

Participated in the iron and steel business representatives also agreed that taking into account the market supply and demand and the ability of downstream users, will not arbitrarily raise prices, nor willing to volatility of steel prices. In recent years, the experience of iron and steel industry production and operation shows that high prices of steel does not mean that steel mills high profits, because the price of raw materials, accessories will rise sharply with the rise in steel prices, usually more than steel prices, steel industry By such a scissors poor pain has been more than once. Iron and steel enterprises on the smooth operation of the industry's desire and expectations over the relevant parties, will actively maintain the smooth operation of the industry---shandong jndo hoisting equipment co.,ltd.