Affected by the relationship between supply and demand

Affected by the relationship between supply and demand, the steel prices always present fluctuation trends. Especially, in today's economic instability period, the price of steel shows more performance out of a lot of variables. China is a big country of the world's steel production and consumption, the situation of China Steel will have a big affect on world’s steel products and steel prices. The below will give some useful guide about top 5 steel products from China, It will help you to better predict the status quo of China's steel.

Angle Iron

Angle iron is a special angle steel, according to its features, the using of angle iron is very extensive. For example, it can be widely used in building structures and engineering structures. If you want to build a factory, build a new bridge, especially, construction of transmission towers, the angle iron plays so important role. In general, the angle steel can be divided into equal angles and unequal angles, which they have a wide range of uses.

Galvanized Steel Coil

We all know that galvanized steel coil has a great consumption in the world. Firstly, because steel coil is rendered as roll, it is so conveniently for storage and transportation. From a processing standpoint, the coil can easily perform various processing, such as it can be processed into a plate, strip, etc. Of course, galvanized steel coil, which has better performances than general coil, can be used with high-level requirements field, like shipbuilding, automobile manufacturing, made ​​the trains, the rail, a house built of reinforced-made steel bridge, etc.

Cold rolled coil

Comparing to hot rolled coil, cold rolled coil has superior mechanical properties, like cold rolled coil is more precise thickness, and the surface is smooth and beautiful. Because Cold rolled steel is steel after cold rolling production, original volume is relatively brittle and hard, and is not suitable for processing, usually cold rolled steel requirements before you can use after after annealing, pickling and smooth surface.

Galvanized steel sheet

The steel sheet is a plate-shaped steel, the kind of steel sheet is so many, With the development of science and technology and industrial materials, steel sheet put forward higher requirements, higher strength, resistance to high temperature, high pressure, low temperature resistance, corrosion resistance, wear and tear, as well as other special physical and chemical properties of the request, and so on. Especially, galvanized steel sheet has much better performances, now more and more fields begin to use it.

ERW pipe

ERW pipe is shorten from Electric Resistance Welding, this pipe plays a very important role in steel pipe of the world. Overall speaking, ERW Pipe can be used as agricultural irrigation, urban construction, and for the transport of liquids: water supply and drainage. For gas delivery with: gas, steam, liquefied petroleum gas. Used for structure: for piling pipe for bridges; piers, roads, buildings, structures with tubes. Especially, ERW pipe can be used to transport oil, natural gas and other vapor-liquid objects, to meet the high requirements of low pressure, occupies a pivotal position in the field of conveyor tube in the world.

Generally speaking, the above several steel products has a very wide using area, owing to different demand, we can choose the proper steel products, comparing to other counties steel, China steel has a greater advantage, specially, the steel prices can be proper.

Chinese steel prices have fallen

Now it is the season to wear thick clothes. Scarlet sweater turned out, down jacket turned out, collar turned out, a lot of clothing inventory, but the grass is always greener is human nature, so a bunch of clothes did not bring me much of a surprise, this feels like the recent China steel market, the stock decline in both, but the surprise was general merchants like.

Bad weather, the number of downstream construction will be blocked, the steel market demand will weaken, businesses Dongchu idea and hesitant, in this case, the week before the steel stocks rose for the first time after the National Day, but justone week only, until last weekend, the domestic steel stocks have once again returned to the downstream channel. According to statistics, as of November 23, the social inventory of the country's 26 major markets five varieties of steel (rebar, wire rod, hot rolled coils, cold rolled coils) to 11.927 million tons, compared with the previous week, dropped by 16.5 tons, total inventory hit the lowest level since December 2009; (November 25, 2011), compared with the same period last year, the total inventory decreased to 1.209 million tons, the first decline in five weeks zoom.

In previous years, this time inventory decline is quite normal, but in the case of steel production to continue to enlarge the market demand and a marked decline in this year, stocks are still down, which was a bit surprised, but has not reached the degree of surprise. Stock decline, which means that the recent merchants who would be no pressure on the stock, this week is the last week of November, slightly ease the pressure on the stock for the toss funding problems, irritability down businesses, can be considered a little comfort, but will not have to do this joy.

We believe that the domestic steel stocks slipped last week, with the iron ore market inventory decline are not unrelated. As far as we know, the domestic steel stocks declined, while last week, iron ore stocks have also experienced a decline, and also has four consecutive weeks of decline. According to statistics, as of November 23, 2012, the 30 major ports in the country's total iron ore stocks at 82.63 million tons, a decrease of 2.68 million tons compared with the previous week, declining for four consecutive weeks. Compared with the same period last year (November 25, 2011), the total inventory reduction of 14.7 million tons, a year-on-year decline to continue to expand. View from iron ore sources, last week, the three major sources of imports for stocks to continue across the board decline in Brazilian ore to reduce still up, a decrease of 1.52 million tons compared with the previous week, a decrease of 40,000 tons and 250,000 tons respectively in Australia and India mine.

With the arrival of winter, the reduced demand for steel, the late steel mills may be forced to cut production behavior, which will directly affect the demand for iron ore. There may be a lot of people think that the steel industry profit margins, steel mills, how willing to cut it, but It is understood that China's iron and steel industry had the most difficult time of the year, the industry as a whole has improved in net investment income and steel Association member companies in mid-October is still a loss, so the steel industry in order to thoroughly losses still very difficult, so even if the steel mills want to continue to increase, attitudes also appear hesitant.

The recent downward pressure of domestic steel prices are increasing, and indirectly led to the price of iron ore are into the downstream channel. Perhaps it was taking into account these factors, a decrease in supply of iron ore, the stock began to slowly decline. On the other hand, the supply and demand pressures, many large enterprises have continued to cut production of behavior, steel procurement is more hesitant, so the whole steel inventory is not a big pressure, not urging businesses to fill inventory, and that makes the recent steel City's stock decline.

On the whole, China steel prices and iron ore stocks tumble, however, for the business, how to open the demand is the real key, the inventory decline of course, will ease the pressure of the business, but the difference in demandbefore, businesses are difficult to real joy.

This Year Steel Plate Market Will Get Better

Recently, Baosteel raised the ex-factory price . Including hot rolled steel plate, ordinary cold plate prices up 100 yuan / ton, pickling plate, hot galvanized plate prices by 80 yuan / ton, aluminum zinc plate prices by 120 yuan / ton, non-oriented electrical steel prices by 50 yuan / ton to 150 yuan / ton. Upward, the conventional specifications 1.0mm × 1250mm cold rolled coils (SPCC) listed price of 4356 yuan / ton (excluding tax, the same below), 5.5mm x 1500mm (SS400) table columns of hot rolled coil price 4062 yuan / ton, 3.0mm × 1250mm (SPHC) hot rolled coil listed price of 4312 yuan / ton. This is Baosteel following raised prices in March, the second time this year to the ex-factory price upregulation. Known as Steel City "benchmark," said ex-factory price of Baosteel round up, add a lot of confidence to the steel trading business.

Part of the plate metal traders said Baosteel round up prices in December expected. The overall increase, led by the ex-factory price of Baosteel and other large steel enterprises, the market sheet plate price during the year will continue steadily.

Recently, the steel plate market performance was significantly stronger than the long products, especially the strong market performance of hot-rolled coil. Compared to early September, the national average price of hot-rolled coil has risen to 750 yuan / ton, which price rises in October, November, about 300 yuan / ton. The Baosteel prices up disk appearance, to further promote the spot market price to rise. On November 12, the Shanghai market hot-rolled coil prices continued to rise, up 30 yuan / ton to 90 yuan / ton; cold rolled Hangzhou, Tianjin, Beijing, Guangzhou and other market prices are generally rising.

Steel supply side, this year, the last remaining more than a month into the maintenance period, a lot of steel mills, plate production rhythm slowed down, no significant increase in production. According to the situation of the steel trading business feedback, recently, the small number of steel hot rolled coil market resources, there are a lot of hot rolled coil steel mills for nearly two months did not enter the domestic distribution market, but a large number of for export. The early domestic sheet products exports maintained a high level, coupled with the increase in exports of its deep processing varieties, and to some extent alleviate the pressure on the supply of the domestic market. Nowadays, the hot rolled coil market in Shanghai, Hangzhou and other available resources generally tight, some even serious shortage, businesses offer substantial pull-up. According to the survey, in November, the major domestic steel hot-rolled coil plan to invest the amount of commodities to 800 million tons, cold rolled coil plan to invest the amount of commodities to 16.05 million tons, essentially flat with October. This helps ease the contradiction between supply and demand, and stabilize the market price. In short, the current sheet resources scarce, there is not enough resources to supplement and, in a certain period of time, in the case of rigid demand did not significantly reduce the prices may also continue upward.

China steel import and export toward the off-season

The weather turns cold , everyone a languid look , site procurement also reduces a lot of demand for steel has been shrinking . And Dongchu steel suppliers trading business this year , the enthusiasm was generally weak, Steel City, the turnover has been feeling kind of bad to worse . Most people felt steel seasonal consumption in the off-season is gradually coming , therefore , wait and see on the market is a more intense atmosphere .

According to China Customs Express data shows , China 's exports of steel and iron ore imports qoq decline in both October . The data show that in steel exports in October were exported 4.84 million tons of steel ring decreased by 31 million tons compared with 5.15 million tons in September , a decline of 0.6 % year-on-year increase of 26.7% . January-October total exports of 45.78 million tons of steel , a year - on - year increase of 11.8% . The data also showed that 10 months of imports of 1.03 million tons of steel , a decrease of 170,000 tons , a decline of 14.2 % . Steel imports in January-October total of 11.55 million tons , down 12.2% , only lasted only a month , was forced to reverse a good situation for steel exports .

We believe that the decrease in exports of steel impact will be concentrated on the merchant mentality, but this is relative to the previous years, because in the previous years, see the decrease in exports of steel, the business mind may be turned pessimistic, but this yearthe eighteen major convene let the steel trading business, they held their breath waiting for favorable policies, the decrease in exports of China steel also let businesses hesitation, but the main thought of the steel trading business is still concentrated in the 18th Party Congress, therefore, it is estimatedthe recent steel price not yet have greater fluctuation.

However, in addition to weakening steel export data, iron ore imports in October also fell. According to statistics, in October China's imports of iron ore 56.43 million tons, ring than in September, down 13.2% year-on-year increase of 12.99%, 1-October cumulative imports of 607 million tons, an increase of 8.9%. From the iron ore import prices, the unit price of imports in October was 104.9 U.S. dollars / ton, a decline of 9.5%, year-on-year decline of up to 40.2% in January-October total import price of 132.3 U.S. dollars / ton, down 20.6%. Iron ore imports decline, which we expected.

As for the demand side, the weaker downstream demand for building materials has been more obvious, because from the inventories of view, as of last week, threaded stock or increase by 0.6% in the previous week; wire by 0.5% from 1.155 million tons, the formerweek by 1.1%;, we believe that this is mainly with the recent cold weather, the northern site stoppages phenomenon increased downstream procurement weak, causing building materials stocks soared to. But overall, the total domestic steel stocks last week but still keep the decline in state of affairs, because in addition to the thread, wire, other varieties of stocks have continued to decline. Hot rolled steel 3.148 million tons down 3.4%, down 2.9% in the previous week; cold rolled steel down 1.0% from 1.601 million tons, down 0.5% in the previous week; plate down 7.0% from 1.287 million tons, down 2.1% in the previous week. Inventory overall downward trend supporting the business mentality is not much fluctuation, and in steel city light atmosphere of turnover, the recent ore, coke prices remain steady rise, the cost of supporting a strong, even for the strong need the weak, but inventory levels are still relatively low, so steel prices will continue to maintain the original pattern difficult to have large fluctuations.

Steel of opportunities and challenges in "Low-profit era"

After 10 consecutive years of rapid development, the operating profit is inevitable in the Chinese steel industry upgrade process and must bear. 21st century, 10 years, is a complete restructuring and development of China's steel industry, iron and steel power second leap.

Comprehensive analysis of the current domestic and international situation, China is facing unprecedented opportunities, but also the face of unprecedented challenges, China's development is still in an important period of strategic opportunities that can accomplish a great deal.

Looking to the future, both from the domestic and international macroeconomic trends, point of view or from the self-development of the steel industry, we need a broader perspective to look at the development of the iron and steel industry.

At present, the global economic environment has undergone great changes. The aftermath of the financial crisis of 2008 is not level, the European debt crisis was underway, the global economy will enter a long period of slow growth. China may face the situation of a fairly long period of slow growth in exports, which will bring the domestic export industries, including China steel and downstream industries have a significant impact. Of particular importance is that the financial crisis is changing the structure of global economic growth, the major developed countries have to revive the manufacturing industry and to expand export policy, China's manufacturing industry is facing the dual pressures of developed countries extrusion and emerging economies catch up, the domestic corporate restructuring and upgrading to more urgent demands. At the same time, however, has not yet completed the industrialization and urbanization will continue for the Chinese economy continued growth momentum is still evident, the international competitiveness of "Made in China", China is still in an important period of strategic opportunities.

In recent years, the "low-profit era" had become a hot word of the iron and steel industry. Iron and steel industry in peril declining, seems like a foregone conclusion. Since September last year, the domestic steel industry into the winter. To August this year, the domestic iron and steel enterprises, or operating profit fend for themselves, or in the gain or loss on the edge of survival.Steel industry after nearly 10 years of rapid development, the supply and demand relationship reversed, already one foot into the inflection point from the "demand" to "oversupply". On the one hand overcapacity intensifies, even the one hand, demand growth is slowing down. Therefore, China steel prices have no advantage in quality and technology, the next step should be up to improve and increase the technology content.

It is understood that, in the good news to stimulate the Anshan markets hot rolled coils prices overall rose in the range of 30-100 yuan / ton between turnover situation has improved, according to feedback Angang, Benxi Iron and Steel production 3.0 * 1250mm hot rolling open flatmainstream offer 3420-3450 yuan / ton, the various varieties and specifications are different rose.

Generally speaking, the transformation of China's iron and steel industry is a business model innovation, technological innovation is the iron and steel enterprises to achieve important support for the restructuring and development conditions. The Baosteel innovation as a foothold in enterprise restructuring and development, adhere to technological innovation as an important means for the implementation of the "the boutique strategic" and "environmental management. We want to speed up the construction of the innovation system, promote the new product development, engineering technology independent integration "and" live "three innovative system of continuous improvement. Future gathering resources research new technologies, develop new products and to optimize the protection mechanism of technological innovation, to create a better atmosphere and the mechanisms of corporate innovation.