Why the national response to the haze in the context

       of steel prices are now significantly weakened

Following the 16 Shenhua coke down 100, this coke market in Tangshan began to usher in a wide range of adjustment, steel mills to coke plant prices 50-100 yuan.

With the deterioration of haze, Tangshan government issued according to the market response is the most stringent recent limited production documents, enterprises limited to 50% of the production, enforcement, raw material market sentiment by the serious pressure.

The current price of Tangshan steel coke to the factory price is more chaotic, the contract implementation of complex, part of the mainstream of the two coke to the factory price of the contract price 50, 2100-2150 yuan / ton, the new contract continued to cut 50, the implementation of 2050 -2070 yuan / ton; quasi-level to the plant in the implementation of 2120-2160 yuan / ton contract, the new batch of supply contract prices are still negotiating; current market transactions are still optimistic, Jiaoqi traders will have a certain margin- Logistics side profits squeeze continues.

December 19, futures disk "green" one, up less or more, steel plate fell across the board. As of the close, the main contract 1705 coke closed at 1755.5 yuan / ton, compared with the previous day down 0.62%; iron ore 1705 main contract closed at 560 yuan / ton, down 7.21% over the previous day; rebar 1705 main contract To close at 3171 yuan / ton, down 5.71% over the previous day; hot rolled coil 1705 main contract closed at 3556 yuan / ton, down 4.74% the previous day.

Spot, the narrow opening today, Tangshan main stable, poor trading some intraday down 20 yuan / ton, the mainstream reported 3170-3200 yuan / ton, the overall weak trading; Tax mainstream reported 2980-3020 yuan / ton, the overall transaction weak. Ton, the channel 3380 yuan / ton, angle 3350 yuan / ton, the overall volume was light, part of the price of the word, Manufacturers based non-transaction.

Why in the country to deal with more than the beginning of a red haze warning early in the context of both steel prices are now significantly weakened?

The author believes that the seasonal demand is expected in the off-season, poor turnover, cost reduction and other factors will be dragged down the formation of steel prices, while the days of spiked steel prices despite environmental policy help, but its role in the "fear High "social sentiment greatly reduced, but the role of support for steel prices significantly.

In addition, some steel mills may "ride" this array of environmental protection to reduce the ex-factory price, increase trading volume, after all, then the high price in the absence of transactions on the basis of only "in the water", no good. Moreover, as the spot market, "the first indicators," Lo, the volume fell for two consecutive days or impact on market sentiment. Therefore, the recent supply and demand will be further weakened at both ends, steel prices are expected to continue to maintain the shock run, short-term or callback demand.