With the "strong" environmental policy, steel companies have become the target of public criticism, and many steel companies have already implemented the limit policy on the production of blast furnaces during the heating season. Recently blast furnace of steel mill in region are overhauled, after the National Day holiday, the rate of operation of blast furnaces shows continuous declition, and statistics so far is 77.44%. As a reslut billet supply significantly reduced, steel price will increase again. Because the demand for billet is increased, and the price of billet is easy to increase.
It is worth noting that there are too many steel mills are shut down in the northern part of China, so the production of steel mills will have a greater impact on supply and demand.
To sum up, in the case of large-scale production of steel mills and production limits, supply reduction is an inevitable trend. This year, steel reserves will be larger than previous years in winter, the supply will fall short of demand , so for those companies who have winter storage plans, we suggest it is time to prepare stock in advance.