"You are like a fire in the winter, the flames illuminate me." In this cold winter, steel prices, especially the price of threaded steel, ignite a fire in the winter.

Data show that from November 27 to December 3, the price of threaded steel in eastern and southern China increased by more than 500 yuan per week. In December, the steel index reached about 5110 yuan/ton, which has risen by 1720 yuan/ton since 2017, up 51.63% over the same period last year. The price index has also reached a new high in six and a half years, the last time it had the same price was on May 4, 2011.

1. Reasons for steel explosion

1. The Effect of Steel Production Limitation

Winter atmospheric control has entered a critical period. In anticipation of environmental protection policy in the heating season, many industries in Beijing, Tianjin and Hebei and their surrounding areas have started to implement the most stringent "shutdown order" in the heating season. Iron and steel enterprises undoubtedly play an important role in limiting and stopping production of enterprises. In most areas of Hebei, Tianjin and Northern Henan, the proportion of production restriction is relatively large, with 50% in key cities; Shandong and Shanxi also have a certain extent of production restriction, ranging from 10% to 20%; even some cities in Jiangsu and Anhui have put restrictions on steel production. Xuzhou, an important producing area of construction steel, is also required to limit production by 50%.

2. unbalance between supply and demand of threaded steel

In the pre-production limit market unification does not favor threaded steel, steel mills unified reduction production of threaded steel, resulting in short-term imbalance between supply and demand of threaded steel. At the same time, in anticipation of weak demand for threaded steel, more steel mills allocate iron and water resources to plate and strip, excellent and special steel and other varieties, whether in limited or non-limited regional steel mills, tend to reduce the production of threaded steel. In recent years, the output of threaded steel has decreased significantly compared with September and October.