Development and Reform Commission: Restricted Production Affects Steel Prices Will Keep Rising

According to the monitoring of the major steel markets in 30 provinces (autonomous regions and municipalities) of the country, the price of steel products continued to rise this week. The comprehensive average price of major steel products was 4,834 yuan per ton, which was an increase of 2.92% over the previous week.

We expect that some areas in recent days have increased their energy-saving and emission reduction efforts and imposed restrictions on production and production suspension for some steel mills, leading to a reduction in the steel market supply in the short term. After entering September, the demand for the steel market has gradually increased. Coupled with the increase in prices of raw materials such as scrap, steel billets and coke, it is expected that the price of steel products will continue to increase in the later period.

In addition, the monitoring results of the major agricultural product wholesale markets in the country showed that the vegetable wholesale price was stable and slightly lower this week, the wholesale price of meat rose slightly, and the wholesale price of eggs rose for the 16th consecutive week.

According to the monitoring of the major agricultural product wholesale markets in the country, the price of food this week has remained basically stable. Among them, the average wholesale price of mixed wheat was 2,060 yuan per ton, up by 0.98% from last week; the average wholesale price of corn was 2,060 yuan per ton, down by 0.96% from last week; the price of edible oil rose steadily and the average wholesale price was 11.74 yuan. /kg, up 0.34% compared to last week.

We expect that due to the overall balance of grain supply and demand in China, the country's adequate food stocks, and strong regulatory capacity, and soon after the new grain will be listed in succession, the domestic grain prices in the later period will be mainly stable.

In addition, due to the proximity of the two sections, the consumption of meat, eggs and vegetables will increase, and the price of meat and eggs will increase slightly in the later period. Vegetable prices will stop falling and stabilize.