Recent Changes in The Supply And Demand Structure Of The Domestic Copper Stranded Wire Market

Recently, the State Council announced the implementation of the quantitative indicators and tasks of the 2017 "Government Work Report". In terms of capacity reduction, the country reduced steel production capacity by more than 50 million tons last year, resolved a cumulative coal overcapacity of 250 million tons, phased out, stopped construction, and slowed down. The coal-fired power generation capacity will be 65 million kilowatts, exceeding the relevant targets and tasks.

With the further advancement of the supply-side reform, the supply and demand structure of the domestic copper stranded wire market has also changed. After the Spring Festival holiday, the domestic spot steel market has a "good start", and steel prices have risen slightly. On March 1, according to monitoring data, the price of rebar was 4,277 yuan/ton, an increase of 158 yuan/ton compared with that before the holiday, an increase of 191 yuan/ton compared with the beginning of February, and a year-on-year increase of 386 yuan/ton.

Industry insiders said that under the circumstance that the production limit policy boosted the enthusiasm of the market to do more, and the demand for gold, three silver and four peak seasons can be expected, rebar is expected to break through the previous high. At the same time, considering that the price of steel rose sharply last year, even if there was a sharp correction at the end of the year, the current price is still nearly 700 yuan/ton higher than the same period last year. Before the Spring Festival, most merchants took the initiative to carry out winter storage, which led to the higher cost of winter storage this year, which further prompted merchants to increase their willingness.