In the market economy, the relationship between supply and demand is the fundamental factor in determining price changes. Entered since 2017, the price of thread shocks upward, the market recognized the reason is that the current steel supply side of the gap, short-term supply and demand imbalance is the main reason for rising prices. And how did this gap come into being? In the case of high profits, the market will consciously increase the supply to repair the gap, so how will it be fixed? Let's talk about the problem in detail:

First, the steel supply gap refers to what?

"Iron and steel supply gap" in what we mean is to enter since 2017, with the capacity to continuously promote the movement and removal of ground of steel, iron and steel supply decreased, compared with the form in the same period of demand supply is relatively insufficient. We assume that demand change over the same period is stable or less variable.

Two. How did the supply gap come into being?

"China Steel Association vice president Chi Jingdong (in 2017 the first Steel Association conference information) the meeting revealed that he participated in the 25 day to the capacity of the inter ministerial Joint Committee weekly meeting, the provincial land of steel cleaning work in the self-examination according to the general requirements of" capacity to work "since Qing dynasty. According to the current data, the provinces and regions has been cleared from the land of steel a total of more than 500 enterprises, involving 1.19 tons of production capacity. Chi Jingdong said, from May 2nd to May 25th, the Ministry will send 9 capacity to joint working group on all over the land of steel up to carry out special inspection. Is expected to 7, August, the capacity to "ground of steel" clearing work total acceptance." ,

From the news in recent months can understand: with the removal of ground of steel work effect, and determine the basic existing capacity scale steel. With the removal of this part of the non-compliance capacity, so that the original by the burden of steel product supply is removed, so the overall supply on the territory of a "missing corner", caused by the steel short supply gap.

Three, the supply of gaps in the circumstances of the specific performance

1, since 2017, crude steel production increased significantly faster than steel

2, the production of thread year-on-year growth has accelerated, the cumulative growth has just become positive.

3, the thread of the spot price shocks upward during the year, profits remain high

Four, the main way to repair the supply gap in the market:

(1) increase the output of steel directly;

1, improve the rolling utilization of the original production line: full production

2, restart production lines

3, export to domestic sales: the return of steel exports to the domestic market

4, between varieties of production adjustment: depending on the profit situation, reduce the low profit varieties, increase profits, high product output. Field;

(two) corresponding increase of water quantity: (precondition of increasing steel output)

1, improve the utilization coefficient of converter;

2, restart the original converter or furnace shutdown;

3 、 converter with more scrap;

4, outsourcing steel billet (cross regional purchasing billet or even import steel billet)

Five, supply gap repair methods of technical evaluation:

The direct way of supply gap repair is prolific steel, if the original production line with medium frequency furnace mostly have production license compliance of the production line, then used to increase the rolling production capacity is not a problem; the key problem, also is the final production bottleneck is steel - - an increase in the supply of crude steel billet. Here, we analyze the specific conditions:

1, converter with more scrap steel: this method requires steel converter crude steel production capacity is greater than steel production capacity, can digest more scrap steel to increase steel production;

2, increase the utilization ratio of converter and the adjustment of molten steel between steel varieties: limited by the maximum capacity of original converter and production line;

General: supply building materials for half a year or plenty of reasons: the stimulation of high profit part with screw and plate production enterprise "volume" to "snail", the Department of limited resources, but it is worth attention; two steel after removal of scrap resources supply plenty of high profits, the second half of the increase in electric arc furnace steelmaking, market expectations in more than 10 million tons, while the number of years to increment is not enough to replace steel, but the increment. Three, long process to increase horsepower production, four thread outlet backflow, building materials supply in the second half is wider than the first half.