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Current environment does not support GangShi strong rebound

A report released from NDRC showed In the background of inflation, national macro-control liquidity to increase, control measures, coupled with the increase of housing, as does not currently support restricted form powerful rally the steel market.

the national daily production of crude steel is 1913700 tons in March,calculated crude steel production crude steel 59.325 million tons that month.January to march national accumulative total crude steel production 173.50 million tons, an increase of 9.8%, 1.9278 million tons, reach the average daily output during the same period the highest level.In January to march in accordance with daily output calculation, annual output reaches crude steel about 70 million tons.

Report , further growth of steel production increased domestic market competition pressure. The price of steel oscillation running in the first quarter, steel by comprehensive price index rose to 128.29 points at the beginning of the year by the middle of February 136.31 points, then began to fall, to the end of March 131.95 points

Report says, current coal prices at record levels, the international iron ore prices continued to rise in 63 percent or so, grade spot iron ore prices has amounted to about $185 / tons of steel enterprises, seriously extruding the profit space, key steel enterprise’s profit margin only 3%. In order to reduce the cost pressure, part already stopped importing steel enterprise spot iron ore.

However, the report also points out, this year is "the 1025" planning start in, affordable housing and urbanization construction of steel demand form policy measures positive news. Currently, when the Chinese steel sales season, and the international steel market also further improved, steel export significantly increased, Japanese earthquake in a certain extent also promoted steel enterprises for export growth expectations, above all to steel output growth form pulling.
【Source From】Steel Structure Industry Nets