subject: Why is the steel industry is expected to advance, "cast" the end? - Steel prices, steel industry, the steel market - steel industry [print this page] Why is the steel industry is expected to advance, "cast" the end? - Steel prices, steel industry, the steel market - steel industry
Side is the decline in macroeconomic growth, weak demand in the long and short term, one side is the industry's losses, rapid decline in steel exports in recent worries, China's steel industry faces nearly 10 years, the most serious internal and external problems. The central 4 trillion yuan of investment plans for the steel industry is undoubtedly long-term stable development of an injection of a "shot in the arm." Analysts believe this will help boost market confidence, speed up the recovery of steel market bottomed in 2009, the industry expected negative growth is expected to moderate growth of around 5%.
Accelerate the steel industry, "bottoms"
"4 trillion yuan investment program would help restore the confidence of all of the steel market."
Interview of the Qi Xiangdong, once again stressed his confidence in the theory, he thought, panic overnight "scared" of China's steel demand has resulted in China's steel prices plunge. The restoration of confidence can reduce the panic, the real demand for steel to return to the market.
However, the Chinese steel market, "bottom" Where? How many hearts do with bottom? Without this 4 trillion yuan investment, all is not easy to say.
Recently, an automobile manufacturer or hesitation and returned the group of Baosteel Cold plate Orders. One is afraid of hard to sell cars in the first quarter next year, and second, fear of steel prices down poured out.
As steel end customers like this, as the steel market intermediary traders how?
Lange Steel Information Manager Li Zhao told reporters, "I hit a lot of traders with many phones, they generally can not keep stocks. Do not know when to keep stocks right. 8,9 month, a group of guess' end 'of the traders at the expense before dawn, put it more clearly, they lose old. "
Tianjin, a steel trader no alternative but to tell reporters: "We had two months paid with money earned."
Days will be better than steel it?
A private steel mill in Handan of Hebei general manager told reporters the day before they make 5 million yuan, and now pay 50 million yuan a month. Half of 8000 workers go home, 450 yuan per person per month as living expenses, can sustain long is hard to say.
Private steel mills had a hard time, state-owned large and medium steel mills have had a hard life even more.
Industry analysts believe that traders can not keep stocks, resulting in high steel inventories, capital chain tension. Steel mills to recover funds, had to cut prices shipping. The result of a large steel cargo to where, where traders dumped goods price cuts leave quickly. Therefore, the recent steel price "maintenance of stability" is the steel industry's "heart."
In fact, we are generally concerned about the price of steel will fall where in the end?
Iron ore Spot Mine has dropped 500-600 yuan / ton, dropped by another unlikely; coke to 1100-1200 yuan / ton, down is not much room. The two combined, fell by 10-20%, steel prices on the "incredible" the. Even so, the losses have reached a large steel 800-1,000 yuan / ton. Even if there is a large steel to alleviate the financial pressure, "flesh," Sell "iron", is short-term phenomenon.
Analysts expect the weak cycle of Chinese steel industry is expected to improve before the end of 2009, perhaps, the first quarter of 2009, the situation of the steel industry will be better. Additional 50 million tons next year, demand
If you calculate 4 trillion yuan of investment accounts, steel mills, traders in the market may reduce the number of panic.
