In November, due to the short-term rebound of market demand, strict expectation of environmental protection and production restriction policy, relatively good sales profit margin and release of new production capacity, the production of steel mills grew rapidly. The production index was 53.3%, up 6.2 percentage points month on month. The rise in steel production led to the consumption of raw materials. This month, the inventory index of raw materials was 38%, down 2.5% month on month. However, the expectation of environmental shutdown and production restriction also prompted steel enterprises to tighten their purchasing activities of raw materials, with the purchasing volume index of 47.7%, down 1.6% month on month.
Since entering the heating season, some cities have started emergency response to heavy pollution weather, which has put forward clear requirements for the production of iron and steel enterprises, especially for the iron and steel enterprises with relatively low performance rating, the standards for stopping and limiting production are relatively strict. In addition, the current high production costs of iron and steel enterprises are difficult to ease in a short period of time, or will form restrictions on steel production. It is expected that the steel output in December will fall down.
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