Industry news
The impact of rising steel production on the steel ball
China's steel industry, "the more losses more off" circle still continues. China Steel Association statistics show that in early April the domestic crude steel production capacity hit a new high, daily output reached 203.08 million tons, 8.9% more than the average daily production level in 2011, although the mid-range production declined slightly, but the daily output of steel ball is still at 2 million T high above. "Rising crude steel output, forcing steel prices to decline, coupled with the inability to undertake the steel ball demand is expected to 'May Day' post-holiday market pull up difficult." Experts predict.
According to reports, although output growth in April is expected, but so high, contrary to market expectations. For nearly two months, the steelmaker's expansion, the industry generally agreed that due to the steel market in 2011 at the bottom of the long-term operation, the steel mills face a comprehensive loss, against this background, the spring of 2012 is facing a seasonal pick-up and financial environment Improved, the steel ball production retaliatory growth.
Experts pointed out that this year's crude steel retaliatory growth from a low of 1.7 million tons to a record high, it took only two months. Last year, from 1.7 million tons of Nissan in early 2011 to 2.01 million tons in the previous year, it took 6 months.
Even more worrying is that from the market point of view, despite the market after the Spring Festival this year, pulled up 200-300 yuan, but the rebound in the downstream industry is limited, the steel social stock in the process of pulling up not only did not digest, but increased. Thus, under the pressure of high inventory at this stage, steel ball City can not afford the heavy crude steel production.
"Overall, the extraordinary growth in demand for steel driven by the state's 4 trillion yuan investment has come to an end in 2012; the domestic overall economy has shifted to the structural adjustment phase, with GDP double-digit growth of 7.5% from the previous double-digit growth rate; In the downstream, investment in fixed assets in the steel industry slowed down, policies for real estate control continued and some SMEs in the manufacturing sector were in short supply. In addition, due to the slowdown in investment in construction, the output of construction machinery dropped drastically while the impact of the European debt crisis and trade protection led to the reduction of exports in the international market , Coupled with pre-steel ball industry capacity expansion, the domestic steel market oversupply difficulties difficult to ease in the short term. "Experts admit.
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