By weak downstream demand, high raw material prices, steel prices low levels and other factors, China's steel industry is struggling this year, but this situation may continue to be maintained.
Industry experts generally agreed that China's steel industry is going through a difficult period, despite efforts to increase the internal cost control in the enterprise, but difficult to change short-term situation of high cost and low efficiency, the development of the industry outlook is still difficult.
Crude steel production capacity release accelerated, raw material prices remain high, steel prices continued to fall, the high cost of doing business, a substantial decline in total profit of hardship for the industry is running. "Industry and Information Technology Ministry of raw materials, Deputy Director Luo Tiejun that.
China Steel Industry Association, Vice President and Secretary-General Zhang Changfu analysis, market outlook, development of the steel industry still faces enormous challenges:
First of all, the steel market continue to be the situation of supply exceeding demand, steel prices will remain low volatility. The second quarter is the traditional steel consumption season, the state of some key projects under construction is to increase investment, and again lowered the bank deposit reserve ratio by 0.5 percentage points in the People's Bank of China May 18, will play a positive role in stimulating demand for steel. However, due to the capacity release speed is expected late steel market is still oversupply, the volatility of steel prices will remain low, and iron and steel production can only maintain the current slow growth trend.
Secondly, the steel industry, high-cost, low efficiency of the situation is difficult to reverse in the short term. At present, iron and steel production and iron ore, coke, coal and other raw material prices has been at a high level, the other with the national resources, energy prices, the pace of fiscal reforms accelerated, coal, electricity, water, gas and other prices will further increase the business costs will also be increasing; countries to increase energy conservation efforts, and enterprises is also increasing investment in energy saving, environmental protection; imported iron ore prices have been volatile in the uplink; coupled with rising labor costs, high cost of iron and steel enterprises, the situation of the low efficiency of the short term is difficult to change, economic efficiency will be a significant decline compared with last year.
Third, the weak demand in the international market, trade frictions have increased exports more difficult. By the euro zone sovereign debt crisis, the international market demand for steel recovery has been slow, the International Iron and Steel Institute April 27, 2012 global steel demand short-term outlook report, expected this year, the global apparent steel consumption grew 3.6%, not only lower than 2011 real growth of 5.6%, but lower than the 5.4 percent forecast in the fourth quarter of last year. Coupled with the intensification of international trade frictions have increased and international trade protection, iron and steel products exports difficulty will further increase is expected late will not be much growth.
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