Information of steel price in China

The Ministry of Industry issued the "Steel scrap processing industry access conditions": For new ordinary carbon steel scrap processing and distribution enterprises, the annual waste steel processing capacity must be more than 150,000 tons. For transformation and expansion of carbon scrap iron and steel processing and distribution enterprises, the annual waste steel processing capacity should reach 10 Million tons. For waste stainless steel and other special steel processing and distribution enterprises, the processing capacity should reach more than 30,000 tons. Scrap iron and steel products must meet the national standards and industry standards. Not allowed to sell to enterprises which use main frequency furnace and medium frequency furnace, and use 30 tons or lower 30 tons electric furnace (not include high alloy furnace) and other backward production equipment.

Building materials: price of the steel billet rose in last weekend, inquiry from users increased, mentality of steel enterprises is good, so price will rise 20-30 yuan. Market in North part of China will lead to rise again, the external market is driven to wait and see. But the policy supports the current steel prices strong, and the will of enterprises to sell at lower price is not strong, so expect that HRB400 Steel in Beijing and Hebei will be 3080 yuan/ton, compared with the previous day rise 20 yuan/ton; the HRB400 price in Shanghai Shagang will be 3180 yuan/ton, unchanged from the previous day; the HRB400 price in Guangzhou Shaoguan will be 3570 yuan / ton, unchanged from the previous day.

 After the Spring Festival, it is a big probability event that steel price continue to rise: analysts said that the ban for production of low quality bar, which is good for steel in the field of construction,  and is likely to cause the short supply of construction steel in the first half of 2017, the production reduction of medium frequency furnace and other enterprises needs long process to add, which will increase the demand for iron ore and coke; and is good for large and medium-sized compliance iron and steel enterprises, especially the enterprises producing long steel.