Dominoes started falling steel - iron and steel, iron ore, Anshan Iron and Steel - steel industry

Dominoes started falling steel - iron and steel

, iron ore, Anshan Iron and Steel - steel industry

Although the process very complicated, the U.S. astronomical bailout plan ultimately won the Congress.

The financial rescue plan is not only caused uproar in the financial sector, but many affected by economic crisis and the real economy practitioners hoping to be able to change the industry weakness. With domestic Steel Industry that, after a sharp early drop, steel prices have bottomed. Recent U.S. rescue plan and global collaboration will boost the world economy, thus promoting the global steel prices.

However, this view seems to be more challenged. Some experts pointed out by many factors, domestic steel, ore, coke and other products will be vulnerable to run mid-market, hard to be a permanent strong rebound after rebound are likely to continue to fall, this trend does not occur in large melody change, even if the 850 billion U.S. dollars bailout package finally introduced as well. Vulnerable to run hard to change

Steel City "Several hundred billion dollars for the global economy, this is a drop in the bucket." Anhui Yangtze Iron and Steel Co., Ltd. is responsible for import mine minister said Jia.

Chen Kexin points out that if the United States 850 billion U.S. dollars rescue package implemented, can indeed enhance the confidence in the economy and avoid further worsening the financial situation. But so much money into the market, it may provoke a weaker dollar. Thereby increasing the dollar-denominated Iron ore Commodity price movements such as the uncertainty.

Anshan Iron and Steel Trade Company Logistics Division Director Kim said that in recent years, America's "overdraft consumption" created a false prosperity of the economy to the world, including China's steel consumption rose rapidly. But sub-prime crisis broke out, so the U.S. will be in a period of time consumption "debt" stage, which means that the future spending power of Americans, including more residential consumption of steel, automobiles, household appliances will be significantly weakened demand for commodities.

This year, U.S. housing, car sales are sluggish, reaching the lowest level in ten years. Domestic and international steel market mid-price weakness running, the main factor is the ability of the U.S. consumer out of a big problem. The last 10 years, the global imbalance of economic development is an important aspect, is that excessive borrowing against future long-term consumption of Americans, or even not pay back the consumer, such as "sub-prime loans."

U.S. consumption has declined and consumption is bound to make the world of steel and steel products consumption in the future a longer period of time are at a relatively low stage. Weakening demand for steel products this situation, will greatly inhibit the next stage of steel market conditions. Global overcapacity "surface"

The world economic slowdown, housing, automobiles, household appliances and other steel products final consumption spending power weakened, would lead to slower growth in global steel demand, leading to overcapacity in the steel surface.

Rock of Ningbo Iron and Steel Sales Co., Ltd. Marketing Department Chenyou Chun told reporters that the United States now exports screws, nuts and other steel fastener products have been stopped, the number of factory workers has been related to holiday at home.

Variety of industries domino effect on the steel just starting to show. This demand caused by the U.S. deep-rooted problems, leading to a large number of export products of China lost clients. These products and steel, they indirectly play a role, so that China's steel production capacity lost clients. Gradual expansion in the years of China's steel production capacity, that is, the consumption power of the United States over the next stimulus overdraft up. This makes the U.S. economy if there are problems, excess capacity immediately apparent.

Chen Kexin that occurred in the most unlikely relationship between the textile and steel, for example, Chinese exports to the U.S. as one of the important products, the textile industry will consume a large amount of steel per year for plant construction, machinery and equipment. Along with the decline in U.S. spending power, export of textile products began to lose their clients. "Collapse of a large number of textile enterprises, textile cut-off has already begun to cut textile machinery transmission.

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