Trap plight of the four pressure trap iron and steel industry
Li Shijun, the former chief analyst of China Steel Association, said at a seminar on the steel industry is long overdue in numerous conflicts. However, there are two "lucky chance", it's difficult to cover up. A "benefit" in steel exports in the pre-crisis growth; a "benefit" of investment-led financial crisis. "But this time, the estimated wolf really came".
 
From the dilemma of the steel industry, no single factor caused. According to the preliminary analysis in the industry, at least four pressure superposition.
 
Insiders say that the iron ore and other raw material prices, the high hard drop, leading to the steel earnings decline intuitive indicators. In the first half of this year, domestic steel prices between February and March after the Spring Festival has experienced a wave of slightly higher but continued to decline after mid-April. Normal steel prices by the end of June, compared to a high point in mid-April, or at least decreased by 6% above the same period, imports of ore price fell by only about 4%. "This downstream price relationship between the irrational, the profitability of the steel enterprises in the similar hollowed role."
 
Downstream industry demand is low, the low-end product sales,
incompetent, and heavy pressure. This year, the demand on the international market weakness, is not conducive to the expansion of exports of domestic steel. Domestic economic growth in the fall of the adjustment period, the railways and other infrastructure construction investment, real estate regulatory policy to maintain the decline in market demand for shipbuilding, machinery and other major steel industry, which makes a variety of sales in the first half of the structural steel and sheet steel The poor performance. But analysts noted that, from the sales of the first-half profit of steel prices, sales of high value-added specialty steel products is still an upward trend, and larger products gross profit ", which may be the structural adjustment of the steel industry inspiration.
 
A pressure supply. Steel production energy release in the first half of rapid inventory pressure, the market sales do not move, steel Lian Huan "in April, the average daily crude steel output reached 2.01 million tons of new high level. "This is a kind of helpless." Steel Association Deputy Secretary-General Lee-ups in a forum, said the steel industry's production capacity is too high, almost has the future years of growth space to fill. High under the will to exist "passive high-yield".
 
According to the latest statistics from the China Steel Association, as of mid-July, the 76 key steel enterprises steel stocks up to 12.45 million tons, the chain in early July has increased by more than 650,000 tons, close to the historical record in mid-February this year, the highest inventory records .
 
The financial pressure brought about by the financing costs, high debt ratios, but also impact on the profitability of the steel prices. Remind the industry, if the steel market continues to slump, the surface tension of capital, some small and medium-sized steel enterprises may face a slow back section, repayment maturity increasing pressure, could not get new loans and other dilemma, leading to the decline in net cash inflows . "This early warning."



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