The current steel demand is the key to weakening the steel production company to limit the insured price

At present, the demand for steel products is declining. It is crucial for steel companies to limit their guaranteed insured prices.

At present, the demand for steel consumers is already decreasing. Among them, about 10,000 kilometers of railway projects have been suspended, the task of ensuring the start of the basic completion of the housing, real estate, home appliances, automobiles and other major steel industries declined. This has resulted in rapid and significant declines in steel prices and accumulated energy. Therefore, steel companies must limit their production capacity and organize the production according to market demand. This should be the primary task of protecting the market.

According to our analysis, according to the direction of macro-control, GDP growth will continue to fall in the fourth quarter, and the growth rate may slow down to 9%. If it slows to 9%, then the steel industry must reduce production accordingly and maintain a balance with demand. In fact, according to the latest statistics, in the first half of October, the daily output of crude steel for the members of the Steel Association was 1,642,700 tons, which was an increase of 0.18% from the previous month. It is estimated that the daily crude steel output in the country in the first half of October will be 1,933,900 tons, up by 0.18% from the previous month, an increase of 43,900 tons, or an increase of 2.32%, from the average daily output of 1.89 million tons in September. The daily output of 1.89 million tons of steel is equivalent to an annual output of 689 million tons of steel, while the daily output of 1.933 million tons of steel is equivalent to an annual output of 705 million tons of steel, which is 16 million tons more than the former. Under the macro-environment of the slowdown in GDP growth, 16 million tons of steel could not be completely digested. Therefore, the trend of steel prices will be difficult to maintain high levels, which must arouse our heightened concern. It is possible that there will be a problem that steel prices will decline in a relatively short period of time at a later stage.