If the hottest environmental storm hits again, the

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According to data, as of the end of June 2017, the national steel production capacity was 42.39 million tons, 84.8% of the annual task has been completed. Its central enterprises have resolved a total of 5.95 million tons of excess capacity, which has been completed ahead of schedule; A total of 111 million tons of coal production capacity was withdrawn in the first half of the year, achieving 74% of the annual target

2016 launched the first shot of capacity reduction in the steel and coal industry, and 2017 ushered in the real battle of capacity reduction. "Environmental protection" is the central element throughout the whole capacity reduction event. Yesterday, the environmental protection storm in the steel market intensified. The government will conduct a joint safety inspection on the national blast furnace iron making and steelmaking by the State Administration of work safety, the State Environmental Protection Administration, the Ministry of industry and information technology and the national development and Reform Commission from July to October. All blast furnaces that are not in the "standard conditions" of the Ministry of industry and information technology will be shut down for rectification, and all enterprises that do not meet the safety specifications and environmental protection standards will be shut down for rectification. Tracing back to the source, this news is based on the "notice on carrying out national safety production inspection" issued by the work safety committee of the State Council on June 30. According to the previous practice of the country when carrying out safety inspection, although its sales volume only accounts for about 5.5% of the total sales of all adhesive varieties, the unqualified safety inspection needs to be stopped for rectification

although the iron and steel industry has been in the process of environmental protection and production restriction, in 2017, due to the "ground bar steel one pot end" event, there was a supply shortage without unit value for some steel products such as rebar, which was not only a sharp increase in the demand for billet, but also led to a sharp rise in the market price of rebar and other steel products, and the production profit of billet and thread once exceeded 900 yuan/ton. Driven by profits, steel mills have greatly increased their enthusiasm for the production of threads, and the demand for billets has increased, which in turn has greatly increased the output of billets

according to the data of the National Bureau of statistics, the crude steel output in June increased by 5.7% year-on-year to 73.23 million tons, and the monthly crude steel output increased by 4.6% year-on-year to 419.5 million tons. At present, the billet profit is about 934 yuan/ton, and the market resources are tight, and the steel mills' enthusiasm for its production remains at a high level, but the implementation of the above policies will directly inhibit the steel mills' production of billets. Therefore, the next wave of steel market price rise will directly help the billet price rise caused by steel mills' reluctance to sell. On the one hand, at present, few people use the pendulum tensile testing machine in the market. The mineral resources are tight, the market price is rising, and coke enterprises continue to raise the price of coke, and the production cost of steel billets is increasing. On the other hand, the current inventory of steel billets is low. Although the output is higher than last year, it is mostly used in the production of finished products, and the consumption is larger than that of the return valve

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