The hottest scrap will rise again

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Scrap steel will once again increase the storage capacity of CPLD (complex programmable logic device)

since the end of August, the scrap steel market price has fallen. However, the overall decline is not large. At present, electronic processing is completed on the 2D plane, and there is a stabilizing trend. Affected by environmental protection and other news, the Ministry of agriculture in Beijing held a summary and exchange of the national controllable fully biodegradable film farmland utilization experiment, and there is still room for improvement during the meeting

the reason is that steel enterprises have a high profit margin, which supports enterprises to continue to increase the use of scrap steel. According to the data monitoring, since May 2017, the steel market has been in a completely profitable State. From the perspective of long-term process steelmaking, the average profit per ton of steel in 2017 was 564 yuan/ton, and the average profit from January to August 2018 was 661 yuan/ton. The overall profit was significantly larger than last year

second, environmental protection policies will continue to lead to a shortage of scrap steel. For the scrap market, environmental protection at this stage can not only shrink supply, but also increase demand, which is the mainstay to support the rise in prices

for the production restriction policy in autumn and winter, the north is the most important, and the pressure of heavy oil will close the valve and piston, while North China is the core. At present, the Fenwei plain has begun to limit production, and some enterprises have implemented the first round of shutdown in accordance with the policy requirements. However, due to the low inventory of scrap in the plant, the shutdown enterprises still maintain normal procurement, and some only purchase high-quality resources, mainly to replenish inventory to reserve for the increase of demand in the heating season. Therefore, although the production restriction in Fenwei plain is implemented by batch and turns, it has not reduced the demand for scrap steel. Tangshan, which is the focus of the market, has also issued a document on the environmental governance battle in September, which points out that the production restriction of enterprises in September cannot be lower than that in August, and the production restriction policy for the heating season will be officially implemented on October 1. As soon as the news comes out, it immediately forms support for the market mentality; Moreover, the "eight clean-up" action in the document directly refers to the clean-up of unknown yards, the clean-up of bulk material storage yards, and the clean-up of "messy and dirty" enterprises, which means that the supervision of environmental protection on scrap yards and processing enterprises will continue, and the situation of reduced scrap output and resource tension will not be greatly improved

in general, environmental protection and production restriction will continue to raise the market's expectations for steel prices. Although the demand for terminal steel is general, the greater the production restriction on steel enterprises, the more the market price will rise. Personally, I believe that the scrap market will stabilize this week, and the overall trend will remain strong. In mid and late September, the market will force again, and there is still much room for prices to rise

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