Huangshi Steel Prices Rose Reason

Stimulated by the structural reform of coal supply side, Huangshi City, steel prices in January soared about 20%. Reporters on the 16th Xin from the earth to understand the steel market, building materials sales price of 3250 yuan per ton, and in October year on year, rose 600 yuan, or 18.5%; plate sales price of 3,400 yuan per ton, up 700 yuan, 21.5%; profile sales price of 3350 yuan per ton, up 650 yuan, or up to 19.5%.

Huangshi City, vice president of logistics and steel trade association, Huang Shi Xinguo general manager of materials trading company Ke Weiguo analysis, this round of rising for two main reasons, one by the coal supply side structural reform of the stimulus, and second, environmental governance policies influences.
The current surge in steel prices, and coking coal, coke prices rise faster, steel mills profitability is not much changed, mainly cost-push. The reason why coal prices soaring, behind the reasons and the coal supply side of the structural reform. According to the data provided by the National Development and Reform Commission, as of the end of October, the annual coal production capacity target is expected to be completed ahead of schedule, the market supply of coke reduced. As a result, coking coal is in short supply and steel demand is growing. Coke in short supply, automatic coke prices, coke prices pushed steel prices again.
According to its introduction, in November last year, only 700 yuan per ton of coke supply, and now the price reached 2,200 yuan, this sharp rise, prompting a substantial increase in the cost of steel, steel ex-factory price natural rise.
The data show that on October 10 this year, the Central Plains billet price of 2110 yuan per ton, to November 11 this year, billet prices soared to 2540 yuan, the chain rose more than 20%.