This cycle steel dropped by nearly two hundred. In November, rebar rolled up to 1000 yuan per month.

This week, the domestic steel futures and spot markets are not strong enough, especially the futures market performance is poor, while the spot price of construction steel is relatively strong, and the price of sheet and strip is relatively weak. As of Nov. 2, 2018, the comprehensive price index of Langer Iron and Steel reached 169.3 points, down 0.65% from the same period last week and up 0.75% from the same period last month; the price index of long steel reached 192.1 points, up 0.1% from the same period last week and 3.79% from the same period last month; and the price index of sheet steel reached 149 points, down 1.44% from the same period last week and down 2.03% from the same period last month.

This week, the air pollution prevention and control plan of the Wei Wei plain, Tianjin and Shandong provinces was released in autumn and winter. Compared with last year, Tianjin's policy abolished the policy of 50% overall production limit. Enterprises of all types ranged from 50% to 50% production limit, with an average production limit expected to be around 30%. From the time point of view, the production restriction in Tianjin began to be implemented formally on November 1 last year, and it is expected that this year will start from the beginning of the heating season. Looking at the action plan of air pollution control in autumn and winter in Shandong Province, it is mentioned that peak production should be staggered, but there is no specific proportion requirement. From the time point of view, last year's 2 + 26 corridor in the city steel plant production limit for four months (the proportion is not high), this year's time is not less than two months, but also relaxed. The action plan for air pollution control in autumn and winter in Fenwei Plain has also been issued, which proposes staggered peak production in the heating season, but the proportion of specific provinces and municipalities to implement production restrictions is not clear.

In addition, the previous rumors that Shagang and Yonggang will limit production by about 50% in November and the final production limit plan of Shagang and Yonggang will be issued this week. Shagang's five small blast furnaces will stop production for half a month, which is expected to affect hot metal production by about 100,000 tons; Yonggang's three small blast furnaces will stop production for one month, and a 1080 blast furnace will stop production for about 20 days, which is expected to affect the total production of hot metal by about 150,000 tons. No expected impact, especially Shagang, Shagang has little impact on building materials, and no discount on screw threads in November. On the one hand, there is stock in the factory, and the steel billet has been prepared in advance. Because of the large screw difference at present, the profit of screw thread is obviously higher than that of coil material, so the hot metal production basically guarantees screw thread, and the main influence will be manifested in the variety of hot coil. In addition, this week, Hebei Province also launched a second-level warning of heavy pollution weather. Some sintering machines were shut down, and there was no wave in the market.

From the environmental protection policies issued successively, the production restrictions on the steel industry are indeed looser than the same period last year. However, the situation of production restriction of steel mills in Jiangsu area is not as large as previously expected, resulting in a significant setback of confidence in the steel futures market this week, which also has a certain impact on the spot. This week, the main contract of rebar futures closed at 4064 yuan, down 164 yuan from last Friday. Spot prices of threaded steel are relatively strong, mainly due to the low inventory pressure in various parts of the country at present, and even the situation of specifications out of gear has appeared in some areas. It coincides with the implementation of the new national standard for hot-rolled ribbed steel bars. The production process of many steel mills has changed from water-piercing rolling to alloy hot-rolling. In addition, the price of vanadium alloy has risen sharply, and the production cost of threaded steel mills has generally risen by 100-300 yuan. Although the spot price of threaded steel has not increased significantly this week, the prices of steel mills have increased considerably. In recent weeks, steel mills have adjusted 12-14 mm and 28-32 mm specifications, and the price of grade 4 steel has increased continuously. Although the national base price of threaded steel has not changed much this week, the overall average price of threaded steel has increased considerably.

Fortunately, the national steel inventory continued to decline this week. According to the statistics of Langer Iron and Steel Network, the total inventory of construction steel and sheet materials in 29 key cities in China was 8.09 million tons, down 368,000 tons compared with the same period last week, and the decline was basically the same as last week. Among them, construction steel stocks fell by 297,000 tons, down by 117,000 tons from last week, and sheet stocks fell by 71,000 tons, up by 32,000 tons last week. Variety and price differences make the production choice of steel mills gradually changing, the production of threaded steel tends to continue, and the production of sheet and strip may be affected later.

On the economic side, the official PMI index of China's manufacturing industry was 50.2% in October, which was 0.6 percentage point lower than last month, lower than expected, and close to the critical point of prosperity and decline. The performance of the downstream industry is gradually weakening, and the demand for sheet metal is worrying. This week, the main contract of hot rolled coil futures closed at 3744 yuan, down 183 yuan from last Friday, and spot hot coil prices generally fell more than 100 yuan.

structural steel

Specific spot prices, monitoring data show that as of November 2, the average price of 25mm threaded steel in 10 major cities in China was 4708 yuan, up 5 yuan from last Friday and 188 yuan from the same period last month. As of November 2, the average price of 6.5mm and HPB300 high-speed lines in 10 major cities in China was 4948 yuan, down 3 yuan from last Friday and up 121 yuan from the same period last month. As of November 2, the social stock of construction steel in 29 key cities in China reached 39.332 million tons, down 297.3 million tons, or 7.03%, 17.11% from the same period last month, compared with the same period last year, and 17.79% from the same period last year, according to the monitoring data of Langer Steel Cloud Merchant Platform.

Steel plate & sheet

As for the price of hot rolled coils, monitoring data show that as of November 2, the average price of 5.5mm hot rolled coils in 10 key cities in China was 4095 yuan, 96 yuan lower than last Friday and 133 yuan lower than the same period last month. In terms of inventory, as of November 2, the total inventory of hot rolled coils in 29 key cities in China reached 211.36 million tons, down by 231,000 tons from last Friday, an increase of 1.09%, an increase of 11.11% over the same period last month and a 14.48% increase over the same period last year.

As for the price of cold rolled coils, as of November 2, the average price of 1.0mm cold rolled coils in 10 key cities in China was 4,780 yuan, 37 yuan lower than last Friday's price and 75 yuan lower than the same period last month.