deeper through all the news, here is the real reason why IO future surged:
Ministry of Industry yesterday removed 35 Steel Company from its white list. From 2012 to 2015, there were 304 Steel companies on the white list. The news broke out yesterday afternoon and send IO future up 7%.
These 35 steel companies are now on the list of companies that may cut capacity this year. These 35 companies announced have blast furnace production capacity of 59.68 million tons, converter production capacity of 58.35 million tons, electric furnace production capacity of 25.1 million tons. Those 16 companies with electric furnace have 40 sets of production lines. The news sent the IO Future Market up.
In addition to this, the new 1.5 trillion yuan infrastructure investment and the recent Steel regulation to area in Shandong, Jiangxi, Anhui, Liaoning and Sichuan also support IO prices. The Spring Festival holiday after the adjustment of the market factors. Demand also set to increase in coming weeks as construction activities pick up after CNY.
AGO Price at posting:
4.2¢ Sentiment: Hold Disclosure: Held
