Can China's environmental protection policies help steel prices recover?

Recently, the steel market has obviously slowed the pace of the rally, the market has entered a state of shocks and stagflation. In particular, the current market has entered the off-season, steel prices want a new improvement, the injection of new positive will become a necessary condition. However, the current market, the only bright spot is still limited to environmental protection.

 Exports, according to the statistics of the General Administration of Customs, China exported 4.88 million tons of steel in October 2017, down 160,000 tons from the previous month and down 2.72 million tons or 35.3% from the same period of last year. For the first time since March 2014, the monthly export volume dropped to 5 million tons or less. In October, steel imports amounted to 950,000 tons, down 290,000 tons from the previous month and down 130,000 tons from the previous month, a decrease of 12%. From January to October, China exported a total of 64.49 million tons of steel products, a decrease of 28.14 million tons and a decrease of 30.4% over the same period of last year. The total imported steel products amounted to 10.96 million tons, up 50,000 tons or 0.5% over the same period of last year. The downturn in exports is equal to the Chinese steel companies in the shock of a shock absorber, the trend to the late added too much uncertainty.

 Overall, the current heating season in northern steel mills have been implemented in succession, the blast furnace operating rate of steel fell, the inventory remained low industrial chain, steel prices formed a strong support. However, the PMI for manufacturing industry dropped more-than-expected in October. In the fourth quarter, the domestic economy will start to be disadvantaged. In addition, property market regulation will be overweight. The market is still pessimistic about the demand for real estate and infrastructure in the latter part of the year. Therefore, See who speed down faster, because there is no new speculation factor approach, it is expected that the steel market will continue to adjust the shock shocks, the last few new breakthroughs.                   

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