subject: Steel mill was forced to cut a seven-week losing streak, "winter" - the price of steel, iron and steel production - iron and steel i [print this page] Steel mill was forced to cut a seven-week losing streak, "winter" - the price of steel, iron and steel production - iron and steel i
Yesterday, the third in 2008, China's steel Summit on the original fuel market, some steel, said steel prices are falling due, has cut production. Analysts believe that the steel mills cut production on the upper reaches of Iron ore And so the impact will form the original fuel is expected in October, Iron ore price Inflection point occurs. Cut case of cold steel, "winter" "Carefully calculated according to our production plan in September of steel reduced from 500,000 tons to 36 tons of yield reduction of 30%." Raw fuel in the steel market yesterday, on the Summit, the participants Yang Siming, general manager of Nanjing Iron and Steel more than 500 representatives of the steel industry announced this astonishing decision. Not without emotion, he said, in July, Dragons reach more than 400 million yuan of profit, but in August, dropping to 300 million yuan of profits. From July to August, a month, steel mills, winter arrived.
Yang Siming, said the company decided to cut is quite upset. According to current prices, the company loss of long products up to 800 yuan / ton. Cut will lose part of the customer, therefore, decided to produce some loss of Nanjing Iron and Steel products, in order to maintain the present market. However, the production has been reduced to one-third of the original. Present, Nangang has been integrated with 6.5 million tons of steel production, the profit per tonne of steel per capita profit of the first four sectors are listed, return on equity ranks 1. Reporter with a number of exchange participants on behalf of small and medium steel mills found that the reduced output of steel not unusual. At present, domestic steel prices fell 7 weeks straight. Mine production of steel with a small spot forced to stopped blast furnace steel mills. Tangshan an annual output of 3 million tons of steel executives said the company has stopped BF 4 2. Cut is an indisputable fact that steel prices will not rebound on the Olympics later. Reporter noted that early in August, many markets are concerned, this year's steel prices could fall precipitously. To the present, as Rebar And high in early June, a drop has reached 10% Plate , Hot-rolled prices fall to 15%. Steel industry may usher in a cyclical adjustment Cold snap in the steel industry, they often will be in 4-6 months, a strong rebound. The market believe that this round of steel price decline was mainly due to weaker demand, combined with macro-economic growth inflection point, the steel industry's cyclical adjustment may have come. Yang Siming that the current steel prices falling and before different.
Declining growth rate in the macroeconomic context, the steel industry will face a cyclical adjustment. Analysts also believe that if the steel industry accounts for 50% of consumer real estate market problems, then, steel prices will inevitably drop. Yesterday, the State Information Center, said Zhu Baoliang, chief economist of the current real estate market, although no significant decline in investment, but housing prices and sales have both declined. Public opinion has been concerned about the Government will work out policies to secure price stability, it now appears very large differences among the parties. To be sure, if the macro-economic growth of not less than 9% drop, the policy shift is unlikely. In addition, Zhu Baoliang said the same real estate as an important industry for the consumer driven car, has significant excess capacity. As reflected in the real estate and automotive are the two leading indicators of economic trends, they declined, signaling slowdown in economic growth have now. Pessimistic view is that, in 2009, macroeconomic trend may be less than 9%, the adjustment time may be extended to 2010.
