China Steel consultancy, contradiction of relative surplus production capacity of hot-rolled h-beams costs
Anshan group added its personal capacity of 1.5 million tons, does not phase out 800,000 tonnes of steelmaking capacity and 75,000 tons of steel rolling capacity. From 2005 year, Wuhan iron and steel and its subordinate units illegal expansion of iron-smelting capacity 7.767 million metric tons, steel-making capacity, 9.38 million tons of rolled steel production capacity of 9.1 million tons, not iron-making capacity of two.16 million tons, backward steel-making capacity of 5.three million tons.
Increased price tag volatility. Capacity release and downstream industries demand components, sharp fluctuations in market prices. 2011 year on the very first 3 quarters, China iron and steel Association, steel composite value index rose, and 12.34% and 10.78%, respectively, plus the end was down 6.11%, exactly where lengthy item price tag index fell 6.13%, lumber cost index fell six.61%. Costs of hot-rolled h-beams relative surplus production capacity of contradiction. In 2010, China's crude steel production reached 627 million tons, 44.3% per cent of world production, beyond the 2nd to 20th spot in the combined. In 2011, the steel sector production prior to rendering high-low trend, total supply pattern has not fundamentally enhanced. In line with some steel trade enterprise operators revealed, Mills except in cost Shang "Ming drop" outside, also provides steel trade industrial many "offers policy", so long as cash paid, steel factory value are is low; some steel trade commercial stated, now not be concerned steel sold has earned not to dollars, Mills to they of is hedge sales policy, so long as sold have off, on with out worried losses. Declining steel prices, steel trade enterprise benefits even hedge selling, that's all there is to speed up the "destocking" process, minimize the inventory of steel. At present, China's urbanization of heavy chemical business of medium and medium-term, this determines the secondary business will preserve a higher development rate.
From play steel industry "reservoir" in functional terms and prices of hot-rolled h-beams inventories should focus on circulation, as opposed to piled up in the steel mills. Adds credence towards the industry downturn, China's steel industry is getting shifted from market-oriented steel game; operating pressure of steel trade has slowed, habitual weak rates of hot-rolled h-beams rates achievable.
Source:http://www.rgtsgroup.net
