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Thursday, May 14, 2009

The first time in my three years of monthly net imports of steel

By Professional editor working for Mannequins & Forms.

The consequence of deals of hard metal to be painstaking to deal with sighting

This year, deals of hard metal in the in the household market, expansion to a certain bounds, chiefly condensed concurrently in the main purpose of silicon hard metal, hot-rolled hard metal plates, etc. volumes and varieties. Due to the spiky descent in hard metal trade overseas and deals family member expansion in March this year, the Chinese billet into a mesh deal of lumber has been the circumstances, this is the first time since three years.

Interviewed directly and iron alloy commerce professionals, who usually conceives that, whereas to referee from the present position, yet not constitute a long-term tendencies may be a stage, but should extend to observe this distinction, the careful response.

Import "all of a sudden increase in" driving down steel market

According to statistics of pertinent sections present that in February this year, China imported 1.09 million tons of hard metal, an advance in January than 220,000 tons; deals 310,000 tons hard metal billet, an advance of 18 million tons of hard metal deals from the ring than to undo the down movement purpose of scenery, to advance more than 25%; to March, 1.27 million tons of hard metal deals, exemplifying a expansion in February and 16.5%; 460,000 tons of deals of billet, and in March than increased. Month in March, the total lumber gaps have been changed to mesh deals, which is in 2006 our nation became a mesh exporter of hard metal after the first.

According to "My steel and steel" and other knowledge, for instance hard metal mills and Magang who saw that the hard metal deal "all of a swift advance in", chiefly condensed concurrently in the size of hot-rolled plates, billets, and other kinds oriented silicon steel. Volume of hot-rolled plates and billets in the first two months of this year have been a "net import"; oriented silicon hard metal at the end of February, early March and the end of March have distilled on the happening of the attainment of imports. Shanghai Steel Trade and Chamber of Commerce stakeholders to consider the prevailing quite low-cost foreign volumes of hot-rolled plates are still "down stream."

According to investigation, several worldwide steel-producing nations of the exchange rate alterations, the considerable depreciation of the currency relation to the dollar, may be a rush in trades of the going by car forces. In supplement, China's iron alloy market demand, a pointed shrinkage of market demand in China is somewhat good, the worldwide community and the Chinese finances is anticipated to choose up, take benefit of the use of cost affray in the Chinese market share, foreign iron alloy has become an inescapable alternative to find a way out.

According to reporters that the enquiry, the household sales of iron alloy goods has been sensed in varying qualifications the influence of imported products. This effect is not echoed in the allowance of primary, but in the general cost fluctuations. Magang Lee Marketing and Baosteel International sales are a reflection of capacity of trades of hot-plate and other goods in the amount can not state too much, but the household iron alloy charges will "pull down" some time before capacity tons of household thermal cost of more than 3,100 yuan, trade charges have been underneath 3,000. Oriented silicon iron alloy market is subject to the influence of low-cost imported goods, tons of worth early in January from 4 million dropped drastically from 2.2 million actually, the down turn is the biggest of all diversity of steel.

Do not have the "long-term trend," the situation

Response to changes in steel imports, Baoshan Iron and Steel Institute of charge Wu Ying, China Metallurgical Industry Planning Research Institute, vice president of Lee and the newly created "My iron and steel," Jia liang qun information agencies and other experts believe that the increase in steel imports is likely to continue for some time. However, the current situation to determine, on the whole phenomenon is a stage, does not mean that China's steel import and export of inflection point.

According to the investigation of stakeholders, there is now a snare monthly trade, trade items of iron alloy is only hampered by a relation performance. In February this year, China's iron alloy trade items capacity has been decreased to 39 months to the smallest issue in March, whereas a minor pick-up string of connections, but still stay low. Relative to trade items, as long as the boost in trades, on the susceptible position of snare imports. However, the evolution of the market tendency of international crude iron alloy output in China in supplement to almost 40% of the rate of down turn in the long-term upkeep is unrealistic, as the worldwide short method of the restoration of output, will propel iron alloy charges and international iron alloy charges pick-up, which will step-by-step make an natural environment conducive to trade items of household iron alloy cost space. At the identical time, the down high ground force on household iron alloy charges will be "top" of the influence of iron alloy trades to reside, after all, the capacity of trades of iron alloy utilisation in the household metal and iron alloy plate in the total percentage of less than 3%.

Since the global financial crisis, the domestic steel industry in a difficult position. At present, a fairly broad consensus that the industry is: the difficulties of the iron and steel industry the most direct reason is that the financial crisis in a sudden contraction of demand as a result, the stock prices of mining and the steep decline in steel prices caused by the loss of a large area; to be the market a little warmer, the steel blind rehabilitation and production, steel prices continue to rise, resulting in Steel City again, "bottom." And more profound reason: the structure of excess capacity and severe, in particular the existence of a large number of backward production capacity; industrial concentration is low, crude steel production enterprises less than the average size of one million tons, ranking the top five steel production enterprises of the national total only about 28%; iron ore resources and the low level of maritime security, ability to respond to changes in the market; immature market system of steel, iron and steel products more than 150,000 distributors, operators tend to more speculative; products homogenization serious. The impact of imports of steel market is a "plus or" factors.

Prudent to deal with divergent circumstances

News interview in the enquiry of associates of commerce accepts as factual that the structure of China's iron alloy trades, it is essential to differentiate between distinct positions, to make a distinct investigation in alignment to reply in a aimed at manner.

It is comprehended that in the Chinese hard metal deals to feed processing and processing of imported about 54 out of 100 more than those of hard metal after the windup of processing of trade overseas, in the household use did not in item, is embodied in the demand for foreign markets; deals for in the household use accounting for about 45% of steel. Imports of plate hard metal, are chiefly of in the household goods produced can not generate or can not get concurrently the wants but in addition of high value-added yield, embracing the breadth of less than 1 mm cold-rolled sheet with the specifications, the breadth of 0.3 millimeters less than the yardstick cold-rolled lean & P band and so on, the deal dependency oriented silicon hard metal is as high as 51.4%. Products in the in the household hard metal development has not yet been concluded the upgrading of the structure, the deal of high value-added yield is inevitable; For the matching fluctuations in the deal of yield, it reflects the interaction between in the household and foreign markets, the need to make an very correct assessment.

Experts accept as factual that for the time being, impeded the trade items of iron alloy, increasing inventories of household assets, the influence of iron alloy trades "Three meet," will absolutely change in the competitiveness of household iron alloy market position, worthy of maintained attention. Strong dependence on the trade of high value-added goods should be modified in the implementation of developed revitalization designing efforts to enhance capability of unaligned discovery, encourage the high-end "import substitution" strategy; for somewhat low-end iron alloy goods, but trades will help moderate household metal and iron alloy commerce restructuring and decrease of metal ore are exactly reliant on, do not have to concern too much about. - 18762

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