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Steel prices fluctuate within a narrow range Steel market oversupply is difficult to continue to risefrom:admintime:2017-03-27views:



Recently, the global steel market will change the upsand downs, of which the Asian steel market will enter the stage of the Chinesemarket under the influence of adjustment, the trend of weak shocks, and Europeand the United States steel market will end the adjustment, the gradual upwardtrend. September 20, China Iron and Steel Industry Association released thenews shows that by the country's steady growth policy measures and supply sideof the structural reform of the deepening impact of the national economy willmaintain a smooth running situation, steel demand is expected to maintain thecorresponding scale. But because the domestic steel market is still oversupplysituation, the late steel prices are difficult to continue to rise, will be anarrow range of fluctuations.

China Iron and Steel Industry Associationpointed out that this year, the overall recovery of the world economy is weak,unstable, more uncertain factors. From the domestic situation, China'sstructural adjustment, transformation and upgrading is in the developmentstage, the economic downward pressure is still large. Later, the state willintensify the implementation of a proactive fiscal policy and flexible andappropriate implementation of sound monetary policy, in promoting the"three to one by one" at the same time, moderate expansion ofaggregate demand.

The state to determine the2016 iron and steel capacity to resolve the task of 45 million tons, from thecurrent situation, this year will exceed the annual target. Fixed assetinvestment will maintain a rapid growth, with the continued advance ofurbanization, real estate, infrastructure construction, there is still muchroom for development, will pull steel demand to maintain a considerable scale.Affected by the demand situation improved, domestic steel production remainedat a high level.

According to the National Bureauof Statistics data, from January to August, the national pig iron, crude steeland steel (excluding recycled materials) cumulative production were 469.16million tons, 536.32 million tons and 755.11 million tons, respectively, up-0.8%, 0.1 % And 2.2% respectively. Which in April, June crude steel productionlevel has a record high. According to customs data, from January to August, thecountry's total exports of steel 76.35 million tons, imports of steel 8.7million tons, net exports of crude steel to 70.21 million tons. According tothe above data, the apparent consumption of crude steel from January to Augustwas 466.11 million tons, down 1.1% year on year and 1.0 percentage point higherthan that of crude steel production. China Iron and Steel Industry Associationthat, from the overall situation, the market supply and demand has not changedsignificantly, the late steel prices is difficult to rise sharply.

China Iron and Steel Industry Association, in August,the country steady growth and production capacity policy effect, the main steelindustry to accelerate growth, demand situation has improved, steel pricescontinue to rebound slightly. But because of the oversupply contradiction hasnot changed, the latter is difficult to continue to rise in steel prices, willbe narrow range fluctuations.

In fact, in August, with theweather gradually cool, the domestic market into the steel demand season, steelindustry growth accelerated, steel production chain rose, steel pricescontinued to rise. However, into the September steel prices began to fluctuateslightly. In this regard, the China Iron and Steel Industry Association thatthe steel market needs to pay attention to the main issues: First, iron andsteel production to maintain a high level of supply and demand has not changed.In August, the national crude steel production grew 2.63% qoq, up 3.0% yoy.Although 9,10 month is the steel consumption season, but the market will not bemore than the contradiction will be significantly improved. Iron and steelenterprises should carefully analyze the supply and demand situation, take theinitiative to adjust the product structure, and actively adapt to marketchanges.

Second, coal, coke prices rosesharply, the formation of a greater impact on the formation of iron and steelenterprises. As of September 16, coking coal and metallurgical coke prices werehigher than the beginning of August rose 195 yuan / ton and 352 / ton. Or27.86% and 38.18%, while the same period CSPI steel prices rose only 5.16%. Thesharp rise in coal prices will have a greater impact on the formation of steelcompanies.

Third, steel exports decreasedsignificantly, increasing the domestic market supply and demand contradictions.In August, the national steel exports fell to 9.01 million tons, down 12.5%,down 7.4%. With the international trade protection friction increases and theinternational environment is complex, the later steel export difficulty will bebigger, is not conducive to alleviate the contradiction between domestic marketsupply and demand.

 

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