Curb placed on metal overcapacity

The State Council released a document on Feb 4 aimed at solving overcapacity in the steel and iron industries, together with an effort to promote the development of enterprises in the field.

China has pledged to cut its steel capacity by around 45 million tonnes this year and by 140 million tonnes by 2020.

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The most-traded rebar, used in construction, rose 0.47 percent to 2,584 yuan ($389) a tonne on the Shanghai Futures Exchange on Friday after the output data. The contract hit 2,639 yuan on Wednesday, its highest since April 26.

Based on the trading record in these three month, the steel pricing has been keep rising day by day, and we fear that it will not go back to normal point in 2016.

Due to this governmental cutting, the steel in market is tigthened,no sign to be average point in 2016.

Notes: The final result is that the prices of scaffoldings will be rised day by day.

THE EARLIER ORDERING, THE MORE COSTS SAVING.

 

Reference link:

http://english.gov.cn/policies/latest_releases/2016/02/04/content_281475284246061.htm

http://www.cnbc.com/2016/08/12/reuters-america-update-2-china-daily-steel-output-drops-offers-some-respite-to-glut-woes.html

http://www.reuters.com/article/china-steel-hebei-idUSB9N1A700S