Can the production restriction promote the recovery of A572 grade 50 steel price

Affected by adverse weather, Fengrun District of Tangshan City recently issued an emergency notice to further tighten steel production control, which is not the first production restriction notice of Tangshan in June. As early as the end of May, Tangshan has issued a production restriction notice from June 1 to June 30. So, can this production restriction reduce the A572 grade 50 steel production, so as to relieve the pressure of supply and demand, and promote the recovery of A572 grade 50 steel price?

Some analysts said that the price of Tangshan profiles stopped falling and rebounded during the Dragon Boat Festival holiday, stimulated by the environmental protection production restriction. At present, most of the rolling mills have stopped production and their inventories have remained at an average level. The main impact of this production restriction is the output of profiles, and the time is relatively short. In addition, the previous production restriction notice issued by Tangshan has not been implemented basically, so the overall impact on the trend of A572 grade 50 steel price is not significant.

For the later trend of A572 grade 50 steel price, some analysts also said that the market is currently in the direction selection period and window period. Although the supply and demand pattern of A572 grade 50 steel is undergoing subtle changes, it is not ruled out that the short-term stock replenishment demand has a staged small rebound, but the overall trend in the later period is more likely to be weak.