The policy of removing production capacity of iron and steel continues to push forward. The central government has made it clear that eliminating backward production capacity, especially thoroughly cleaning up "ground bar steel" is an important part of this years work. On the 10th, the deputy director of the national development and Reform Commission stressed that all ground bar steel should be removed before June 30, 2017, and 12 supervision groups have been sent to various places! On the same day, Hebei Province put forward rectification opinions on the de capacity replacement scheme of eight iron and steel projects. Boosted by the news, the black series futures market rose sharply. Up to now, Tangshan steel billet has increased by 90-2870 yuan / ton, including tax. However, after the spot price narrowly increased, the transaction was weak and the continuous rising momentum was insufficient. For the later trend, it is suggested that businesses should not be too optimistic and should consider the demand trend more, Careful operation.

On the demand side, the year is coming, and the two pillar industries supporting the steel market, the real estate market and the basic health market, are in a stagnant stage due to the large number of workers returning home. The spot transaction is getting colder and colder. At present, the social inventory continues to accumulate, mainly due to the arrival of steel resources in succession. As the year approaches, the demand shrinks, and some businesses are more confident about the market trend in the coming year, Winter storage will strengthen, but consider the current situation  The regulation of real estate is tightening, and the demand is weakening in the short term.

In terms of snail futures, Shanghai snail closed at 3182, up 87, or 2.81%. Plate between strong shocks, the highest 3202, the lowest 3135, the day K line closed small, Yang cross star, contract shrinkage, expected to be stable from up in the short term. The Shanghai composite index declined slightly, closing at 3136.75, down 24.92, or 0.79%, looking forward to a big rise and providing short-term support for the market price.

Based on the above, considering the warm wind of the policy, the steel price tends to be strong and volatile. However, the specific effect of the implementation of the policy remains to be further observed, and it is suggested that businesses should operate cautiously.