12Cr1MoV alloy steel production may get down in the fourth quarter

In September, the expected peak season did not appear, and 12Cr1MoV alloy steel production was tightened. In October, there is still room for market demand to rise, and steel enterprises also have expectations for this. It is expected that demand will lead to a short-term rise in production in October. However, in November, due to the impact of heating season production restriction and steel stoppage, the supply and demand sides of the 12Cr1MoV alloy steel market will be tightened synchronously.

Judging from the policy of limiting production in heating season, this year's production restriction will be more strict than that in the past two years. In addition, the current steel mills and social inventory is still at a high level, the huge inventory has a squeezing effect on the 12Cr1MoV alloy steel output. The price of raw materials is also at a relatively high level, which brings pressure to the production of steel enterprises. It is expected that in the fourth quarter, the steel mill production will tend to decline after a short rise, and the quarterly output may fall, but it will still increase year on year.

Overall, in September, the market demand was lower than expected, and the production of steel mills decreased accordingly, which led to the continuous downward trend of 12Cr1MoV alloy steel prices and the slowdown of raw material prices. Overall, the steel market showed a pattern of sluggish peak season, but steel enterprises still had expectations for October. It is expected that in October, although there is uncertainty in market demand, there is still room for increase. Steel mill production will rise in the short term, but the total output in the fourth quarter may decline month on month.