Loss! Spring Festival approaching, electric furnace production to speed up!

Research conclusion

1. The steel price fluctuated and rose, and the loss of EAF was alleviated. In recent days, screw shock higher, steel plants actively pushed up, and the market rose slightly. Juxing graphite electrode is provided for EAF steelmaking. In addition, downstream site stocked in advance, terminal demand has a wave of release, and the overall market performance is more active. Near the end of the year, electric furnace plants have holidays, the demand for scrap has decreased, and steel plants daily scrap consumption has continued to decline. However, the market scrap resources are still tight, the scrap market is weak in both supply and demand. It is expected that the short-term scrap price will fluctuate narrowly. Taking Sichuan sample EAF enterprises as an example, the current estimated cost of EAF is 4718 yuan/ton, the same as that of the previous period. The market price is 4710 yuan/ton, 70 yuan/ton higher than that of the previous period. The calculated theoretical profit is - 8 yuan/ton, 70 yuan/ton higher than that of the previous period.

2. After investigation, there are 19 sample EAF steel plants in the west, of which 10 steel plants have stopped production, 5 steel plants have maintained unsaturated production and 4 have maintained full load production.

3. According to statistics, this week the yield of 19 sample EAF steel plants reached 39.81%, down 7.96% compared with the previous period.

Research details

1. It is learned that some electric furnace enterprises in Sichuan plan to stop production recently, among which CDCS stopped 2 lines at the end of December, MZJQ stopped production at the end of December, and SHCZ postponed the production plan to January 15th due to the recent spot price rise.

2. DG, JLD, SY and FG of EAF plants in Yunnan area stopped production in this period, and FG resumed production recently. The supply of scrap steel in Guiyang is tight. MD, ZG, FX and CL plans are all suspended and scheduled to resume production after year. The holiday time of guizhou electric furnace enterprises is advanced this year.

To sum up, the recent screw shock higher, steel mills actively pull up, the market followed. At present, most steel plants have a winter storage policy. Traders focus on winter storage. The demand for early preparation at downstream construction sites has been released recently, and the overall market performance is active. However, as the construction sites have been shut down for holidays, the market demand has gradually stagnated, and the expected steel price would be fluctuated and weakened in the later stage. The price fluctuation of scrap steel is relatively strong. Recently, the electric furnace plants have gradually stopped production and holidays, and the demand for scrap steel has weakened. At the same time, the scrap steel base has also begun to shut down for holidays. The circulation of market resources is tight. The scrap steel market as a whole is weak in both supply and demand. It is expected that the scrap steel price is expected to narrow shock, getting the latest EAF news from us.