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Seamless steel pipe information on August 9th

Number of visits: Date:2017-5-23 15:37

many industries with excess capacity in China, the steel industry in some subtle. And photovoltaic industries such as shipbuilding, subject to international environmental impact is different, some people want the government to regain economic stimulus plan can lead quickly out of iron and steel industry. However, the expected seems overly optimistic.

According to the world steel association and China economic information network data published estimates, China's steel consumption in the first half of 2013 year-on-year growth of 8.8%. This although sharply higher than the 2.4% growth in the whole year of 2012, but probably did not reflect the end demand. "In the first half of 2013 high growth is based on the expected economic stabilization after an inventory of enterprise, but the second half of the economic growth may be worse than expected." Moody's, a rating agency, an analyst at zou following confessed.

Zou Jiming further argues that at present the entire Asia are all in the weakness of the demand for steel, steel demand growth in the next 12 months only 2% - 2%, Chinese is hard to become the exception; Instead, overcapacity in China's steel enterprises, the steel industry profit margins will drag the rest of Asia. This means that the export and transfer capacity are difficult to play a role.
Has just been elected President of sinosteel XieXin session to Mr Xu, chairman of baosteel, publicly called for, overcapacity in the Chinese steel industry is only mild. He stressed that the economic cycle peak is absolute surplus and overcapacity. "Now is the economic slump, once to stimulate the economy, economic growth, steel demand, excess capacity is not."

In fact, the Chinese government has recently started a small stimulus program, including support for real estate construction is given priority to with turn shantytowns into new housing areas, expand the scale of investment in railway construction. Also, the national development and reform commission said, planning measures are expected in the second half of the urbanization.
"Over the past 10 years, China's real estate and rail transportation as the main pillar industry, the steel demand is very clear." Cisa, analysts said, "but in the next 10 years will be after the real estate and rail transit times, China's economic and social development, the demand for steel is mainly rely on instinct to rigid demand."

Analysts further pointed out that the current proposed "urbanization" although everything, but only is the result of sexual concept noun, driven by demand for steel, also the lack of influential pillar industries.

China's manufacturing PMI synchronization measure of demand for steel. From July PMI index rose slightly to 50.3%, but less than 50.8% in May, the lack of data has been the industry questioned; HSBC manufacturing PMI further decline to 47.7%.

Cisa is expected in 2013 to 2013, the national crude steel output will be increased by 7.5% and 3%, respectively, up to 770 million tons and 790 million tons; Apparent steel demand will grow 5% and 3%, respectively, to 760 million tons and 790 million tons.
The most weak in the value of the commodity, but Zou Jiming thinks that iron and steel enterprises to benefit from it. Iron ore and coking coal for steel in the recent price channel, but abundant raw material inventory, iron and steel enterprise instead of obsolete stocks losses; Steel mills and downstream customers, on the other hand, the lack of bargaining power, falling prices lead to further thin profits.

Zou Jiming at the same time, the steel industry is expected to negative from stable, saying that the poor can dissolve excess and downside risks to disappear before China's economy, the iron and steel enterprises will continue to bear the negative expectations.

If exports, transfer capacity, and hope that the urbanization is difficult to resolve the steel overcapacity problem, so to speed up the steel companies restructuring, improve industrial concentration will be iron and steel industry "short" option. But cisa, said that, for the moment, industry concentration is not high, in this case go the way of "restricting output valuation" the most realistic.

TypeInfo: Company News

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