Compare the China steel and World Steel Situation

Data Shows that machinery industry will increase the amount of steel in China, along with China's economic recovery, China Steel industry will meet new chances. As we all known that the steel prices is able to be changed based on the different situation all over the world. According the July’s date, we can make a detail analytics about China steel market.

We know that in mid-August, Baosteel, Wuhan Iron and Steel and other steel mills raise September ex-factory price, August 20, Angang also will increase. Subsequently, Sha Steel, John Steel, transit, etc. is also full price, price increase of 30 yuan / ton. Steel price increases, indicating that orders started to improve, post-basic needs can be expected.

Perhaps because the reasons for the steel price increases, perhaps because of the post-market is very promising, steel trading business stocking also particularly active. According to statistics, last week's total inventory of steel community down 0.3 percent to 14.79 million tons, 6.207 million tons threaded stock fell 0.4% the previous week, down 1.5%; wire 1,379,000 tons increased 1.0% in the previous week, down 6.5%; rolled 4115000 t drop 1.3 percent, down 0.1 percent the previous week; cold 1,608,000 tons increased by 0.2%, down 1.8 percent the previous week; plate 1,481,000 tons increased by 1.3%, increasing 0.8% the previous week. Last week, the total amount of steel stocks fell significantly narrowed, which surprised us, which shows in order to prepare gold nine, steel trade has started stocking mode again.

Of course, there are some hot steel product, like angle iron, square tube, steel coil, H beam, ERW pipe, etc, their prices has a certain improvement. Sometimes, it is so key for us to get enough information about steel state in the world, which will help us make a wise decision, if you greatly need some steel, in my opinions, you can check the famous website-----SteelFromChina, which can provide you all kinds of latest steel news.

International Iron and Steel Association statistics show that in July 2013, the world's 64 major steel-producing countries and regions in crude steel production was 132 million tons, an increase of 2.7%, compared with 2011 growth of 3.9%.

July 27 EU crude steel production was 13.41 million tons, down 6% compared to 2011 decreased by 10.5%; CIS crude steel production was 9.15 million tons, down 0.2%, down 1.4% compared with 2011; North American crude steel production was 10.02 million tons, an increase of 0.1%, down 0.8% compared with 2011; South American crude steel production was 403 million tons, an increase of 2.7% compared to 2011 decreased by 5.5%; Asian crude steel production was 89.09 million tons, up an increase of 4.9%, compared with 2011 growth of 8.4%.

Therefore, it is possible for steel industry to get a little effective progress in Prices by the development of world economy. Like the professional steel site----SteelFromChina, which can find the latest steel prices information from China, via comparing the steel prices, we can find some rules about different steel products, like ERW pipe, steel Channel, angle iron, steel pipe, Galvanized steel, etc, Basing on these data, we can choose the best steel suppliers for us.

Compare trends of Thailand Steel with China Steel

Via the current state of China steel, it can show, over the past 2-3 years, compared with the world market, Thailand's steel industry seems to render the situation contrarian growth, mainly due to domestic factors gained support, such as private and public construction projects to increase growth and Apartment Property. In addition, the use of steel as the main raw material industry good momentum of growth also provided some support, such as automobiles and parts industry.

First half of 2013, including domestic consumption and export growth, including the Thai steel industry situation is good, in the first four months of data show that steel consumption reached 6.53 million tons, an increase of 22.6% over the same period in 2012, growth accelerated to 9.0% , mainly due to the beginning of this year due to automobile manufacturing steel consumption increased significantly over last year and growing fast. Steel exports but also to achieve growth in 2013 January-April exports of steel and steel products valued at 81.496 billion baht, an increase of 3.4% from the same period last year accelerated to 61.9%.

For the second half of this year, domestic steel demand is mainly gained increasing support construction projects, especially in low-rise and high-rise residential real estate construction and government infrastructure projects. At the same time, pulling power from the car industry or weaken over the first half, the first car under the scheme due to non-delivery of the new car has been delivered to be completed. Dragged down by the automotive industry factors, steel consumption is likely to decline in the second half of this year, because in 2012 the first car in the second half of the automotive industry plan to stimulate the formation of high base effect. However, the research center is expected in 2013 KAITAI annual steel consumption in Thailand up to 1724-1786 tons, an increase of 3.75% -7.50%, compared with 12.2% in 2012, growth slowed.

In Thailand exports of steel and steel products, rest of the year from Australia to Thailand to cancel anti-dumping measures for steel products to get additional support, coupled with development projects in ASEAN countries, especially the construction of infrastructure increases, will lead Thailand to the above two an increase in the market value of steel exports. As the overall trading partner of Thailand's construction industry is in a growth phase, Kai Tai Research Center, believes the situation is Thailand's exports of iron and steel products to increase the value of the opportunity, the annual export value is expected to reach 2,505-2,660 billion baht, an increase of referrals at 13% -20%, although slower than last year's 43.6 percent, but still high growth.

There are some special steel products which have different prices between Thailand and China, however, as usual, like galvanized steel, galvalume steel, steel pipe, steel sections, square tube, rectangular tube, circular tube, etc, has a little more proper prices, therefore, you can choose them according to your requirement.

Asian Steel Prices Trends

In China, despite the recent trend of the stock market, rebar futures and forward markets rebounded slightly, but on the spot market, the real impact is not large, slightly better state of mind and sluggish turnover poured cold water pouring cold. Opened this week, is still continuation of last week to run the disadvantaged, each finished China steel prices dropped again. Lumber prices lower reverse towed upstream billet and coke prices to weaken, but also makes the downstream procurement caution is becoming increasingly clear, take the goods market further weakening of short-term weakness will continue.

In India, the steel market remains weak. Indian hot rolled coil market is weak. The local ex-factory price is maintained at of 33750-34250 rupees / tonne ($ 625-635 / t), equivalent to 581-591 U.S. dollars / ton (CFR) plus 7.5% import duty. With the international steel market weakness, import resources to offer continued to fall, Chinese commercial grade hot rolled coil exports to India at 560-570 U.S. dollars / ton (CFR), 5-15 U.S. dollars / ton, down from last week, but the buyer offered $ 550 / ton (CFR). The cold rolling mill and end users is increasing interest on imported resources, but cautious traders and dealers expected prices continue to fall. Due to weak demand, coupled with imports increasing pressure on India this month, the price of hot rolled fear of decline 500-1000 rupees / tonne ($ 9-19 / t).

In Taiwan, the steel market continued to decline. Plate import market decline. 550-560 U.S. dollars / ton (CFR), now China and Ukraine and Resources News India resources offer about 510 U.S. dollars / ton (FOB) compared with the previous two months, a drop of 110 U.S. dollars / ton, buyers bid at $ 540 / ton (CFR) below the acceptable range beyond the steel mills. Given the current market instability, the buyers are willing to take risks under single market waiting to see darker. Expected short-term the Taiwan plate market will continue to be bottoming.

In Southeast Asia, the the rebar market fell. Due to weak demand, coupled with imported billet and scrap drop in price, Southeast Asia rebar prices will decline. Thailand rebar prices 18400-18500 baht / ton (622-626 U.S. dollars / ton, the rationale dollars), more than two weeks ago, a decrease of 500 baht / ton (17 U.S. dollars / ton). Malaysia 10-12mm threaded offer 2380 ringgit / ton ($ 796 / t) to 2310-2370 ringgit / tonne ($ 773-793 / t), 13-32mm threaded offer from 2230 ringgit / ton (746 U.S. dollars / ton) relaxed to the 2210-2230 ringgit / tonne ($ 739-746 / t). With the end of the Malaysian general election, the market expects that the construction of large-scale projects will speed up the process, the terminal demand will rebound, of rebar prices or soon rose. However, the needs of other countries may rebound limited, and after the rainy season in June and July, the terminal needs to slow further, the consolidation coming months rebar market in Southeast Asia is expected to run.

Above all, the prices of steel show the trend of not stability, via the latest marketing survey, we can find that some steel products will uplift according to the demand of steel market, like angle iron, galvanized angle, rectangular tube, square tube, galvalume steel, ERW pipe, etc. So long as focusing on the latest trend of steel news, we will get more chance for steel trade.

About the situation of China steel trade

Major cities of China steel storing decreased by 47 million tons last week: As of last Friday (2013-4-19) the five steel of the major cities across the country (rebar, wire rod, hot rolled coil, cold rolled coils, steel plate) social steel stocks totaled 2084.25 tons, a decrease of 4.7 million tons compared to the same period in the previous week, has increased qoq, Description of steel the destocking has accelerated, especially rebar market turnover improved markedly.

Consistent decline in the domestic construction steel market last week, by the capital market crash, the market mentality was shocking, merchants offer have been lower. In addition, although recently with the weather warming, the downstream site starts increased procurement requirements than in the past, an increase in inventory of construction steel market decline, but demand for the release speed is far less than "to stock" speed "to the inventory the process seems to be rather long, and also restricting the process of the construction steel market thoroughly warmed. According to latest statistics show that China Iron and Steel Association, crude steel output of the key enterprises in early April 1.6973 million tons, an increase of 2.14 million tons, ten-day growth of 1.28%; national forecast crude steel output of 2,123,900 tons, an increase of 5.2 tons, late growth of 2.51%, a new record. The current point of view, on the one hand, a continuation of the high-volume, on the one hand, high inventory status quo, construction steel market substantive improvement in the pace will be slow down significantly.

Monitoring shows that as of April 19, China 10 major cities 25mm rebar average price of 3634 yuan (t price, the same below), down 60 yuan over the previous weekend, down 99 yuan over the same period the previous month. First-tier cities all fell, the decline in the $ 20-110 range, a drop of up to 110 yuan Shanghai, Beijing, Tianjin, Xi'an, Chengdu or 60-90 yuan, other cities fell 20-50. 10 major cities in 25mm rebar average price of 3,595 yuan, 50 yuan, down from last weekend, down 91 yuan over the same period the previous month; Hangzhou, down 110 yuan, down 60-90 yuan Beijing, Chengdu, Shanghai, Guangzhou, Xi'an , Wuhan, Shenyang and other cities down 10-50. China 10 major cities 6.5mm high line average 3580 yuan, than last weekend, down 47 yuan, down 74 yuan over the same period the previous month; Zhengzhou flat, Beijing, Guangzhou, down 80-90 yuan, other cities fell 20-50 million.

Hot rolled coil: monitoring shows that, as of April 19, the average price of 10 major domestic cities 5.5mm hot-rolled coil is 3747 yuan, down 105 yuan over the previous weekend, down 194 yuan over the same period the previous month; Beijing, Shanghai,Hangzhou, Shenyang, Tianjin or 100-150, Zhengzhou, Xi'an, Wuhan, Guangzhou, Chengdu, down 80-90. Inventory, according to statistics, as of April 19, the 29 major cities hot rolled coil inventory reached 4.536 million tons, compared with the same period last week, an increase of 14,600 tons, an increase of 0.32% over the same period the previous month by 3.07% , 1.06% lower than the same period last year. The leading city of the South Shanghai Stock 1.13 million tons last week by 30,000 tons, an increase of 2.73%; Guangzhou inventory of 77.8 million tons, down 0.5 million tons more than last week, a decline of 0.64%. The dominant northern city of Tianjin, the stock market is 529,000 tons, down 0.8 million tons more than last week, a decline of 1.49%; Handan 14.8 million tons, down 04,300 tons, a decline of 2.84%.: monitoring shows that, as of April 19, the average price of 10 major domestic cities 5.5mm hot-rolled coil is 3747 yuan, down 105 yuan over the previous weekend, down 194 yuan over the same period the previous month; Beijing, Shanghai,Hangzhou, Shenyang, Tianjin or 100-150, Zhengzhou, Xi'an, Wuhan, Guangzhou, Chengdu, down 80-90. Inventory, according to statistics, as of April 19, the 29 major cities hot rolled coil inventory reached 4.536 million tons, compared with the same period last week, an increase of 14,600 tons, an increase of 0.32% over the same period the previous month by 3.07% , 1.06% lower than the same period last year. The leading city of the South Shanghai Stock 1.13 million tons last week by 30,000 tons, an increase of 2.73%; Guangzhou inventory of 77.8 million tons, down 0.5 million tons more than last week, a decline of 0.64%. The dominant northern city of Tianjin, the stock market is 529,000 tons, down 0.8 million tons more than last week, a decline of 1.49%; Handan 14.8 million tons, down 04,300 tons, a decline of 2.84%.

The Trend of China Steel in April 2013

In view of the above analysis, China steel market can usher in growth, supply and demand in the degree of development remains to be seen. Short term, with the weather gradually gets warmer, the demand for slow release in early April will usher in a wave within a narrow range rebound, but the magnitude will remain limited, and in late still need to pay close attention to the latest trends of the market regulation. New "urbanization" policy, as China's economic growth momentum in the next decade, yet it remains on a conceptual level, only to various rules, the planning and the gradual introduction of the Steel City real good, in addition to all around the island announced details of the five countries bearish steel City, may still lead to early April to pick up market push.

Inventory, with the continuous release of the production capacity of China's iron and steel industry, the history of the highest point of the steel inventories continue to be refreshed, and the stock lowest point is gradually climbing, especially experienced for a long time or later in the macro side early positive superimposed boosted, inventory since 2009, the most visible and lasting rise, as of March 29, according to the statistics: Shanghai rebar inventory of 440,400 tons, an increase of 0.94%, a decrease of 0.3% last week; 485,000 tons Guang zhou MoM decrease of 7.62%, a decrease of 2.05% last week; 937,800 tons Beijing, a decrease of 2.4%, an increase of 1.67 percent last week; wire stock of 66,000 tons, an increase of 0.92% from last week, an increase of 4.64%; 478,000 tons Guang zhou MoM decrease of 11.32%, an increase of 0.56% last week; 92,500 tons Beijing, a decrease of 7.04%, an increase of 1.12% last week.

From sheet plate， as of last week, the domestic steel inventories finally emerged decline, but the plate decline rate has been relatively limited. Hot rolled coil and cold rolled coils inventory reduction of 3.9 million tons and 1.5 million tons respectively over the previous week; inventory of hot rolled coil, Wuxi market reduced by more than 3 million tons, is to reduce the most obvious market. The Tianjin market stocks also fell more than 10 thousand tons; Shanghai and Shenyang market increase of more than 10,000 tons. Little change over the stock market of cold rolled coils. This shows that the downstream industry demand is not great on the plate.

The demand side, while social stock rising demand for the release, but it falls short. Since March, the terminal site gradually return to work, steel demand release, but still significantly limited compared with a high level of inventory, the market destocking willingness markedly effective urgent. Macroeconomic data from February, however, the domestic economy is bottoming out and steady growth trend has not changed, but is still in the running state of sub-health and stable price policy of the central bank and the new "the country five" extremely rules promulgatedunder, the downturn in the steel city, once again increasing the pressure.

Overall, construction steel prices north and south of quite different, North China needs better rebounded pileare offer, the southern region due to continued sluggish demand continues to shock fall; and steel plate, hot-rolled steel market continued to fall, the market traded at its lowest ebb, cold rolled coils stabilize, plate steel steady downward. According to market monitoring: As of closing, 25mm two threaded average price of 3,654 yuan, more than last week, down 32 yuan; 25mm three threaded an average price of 3,703 yuan, down 30 yuan; 6.5mm high line price of 3647 yuan, down 82 yuan ; 5.5mm hot-rolled average price of 3,845 yuan, down 96 yuan; 1.0mm cold-rolled average price of 4,886 yuan, up 2 million; 20mm plate average price of 3,843 yuan, or 24 yuan.

The Report of China Steel Market

Demand for the release of the steel market is slowly picking up, the rate of increase is slowing steel inventories, which led directly to the spot price of construction steel to become stable after crash. According to the latest market report provided by the relevant agencies, the China steel  industry has been the basic pattern of demand and upstream costs squeezed at both ends, there is no change, and some steel mills have recently stepped up the intensity of the overhaul and cut.

According to the monitoring, Shanghai construction steel prices stabilized stabilized. Currently, the two rebar on behalf of Shanghai Zhipin specifications tons price of around 3,640 yuan, week, up 10 yuan; Shanghai quality product the three rebar offer in 3670 yuan per ton, up 10 yuan a week. Steel futures market, according to market participants reflect once quickly soared, led to the outbreak of the spot steel city needs some steel trading business even exaggerated, "limited" operation. But soon the trend of steel back to the shock trend, the spot steel ShangXi the procurement initiative also significantly affected.

Previously, some steel parts dealer tense relationship with the steel mills, attracted the attention of the industry. Current point of view, the new changes in vendor relationships, pricing decisions of the steel mills have a certain impact, steel mills considered more cautious. Anshan Iron and Steel Company has recently introduced a plate prices in April, the ex-factory price of the mainstream varieties such as hot-rolled-steel, cold-rolled-steel and steel coil 100-300 yuan per ton dropped significantly, could mean sheet manufacturers raised prices since last December cycle has been completed. Building steel mills latest pricing, although the direction is not exactly the same, but the "stability" putting the word is a common choice.

Fluctuations in the trend of rising last week, the price of the domestic construction steel market is around the higher prices, some cities rose to one hundred yuan, pull up too fast and then fall, but Wednesday, Thursday, rebar futures prices, electronic high lineprice is continuously rising prices rebound again. Last week over the price of the overall slight rebound, the overall turnover was acceptable in parts of the stock began to digest the signs, and played a supporting role in the price rebound. With the weather warming, the demand continues to pick up, the overall market turnover of the situation will continue to improve in most parts of construction steel inventory next week will be open to the inventory process.

From the last week the overall trend in the steel market, construction steel, hot-rolled coil, galvanized steel coil, plate and other varieties of part of the area offer finished lower. According to the China Iron and Steel spot network statistics show that, as of March 22, the 10 major cities in two Φ25mm rebar price was 3,686 yuan, up 16 yuan over the same period the previous week, 10 major cities Φ6.5mm high line an average price of 3,656 yuan, up 22 yuan over the same period the previous week. 10 major cities 5.5mm hot-rolled coil average price of 3,941 yuan, more than the same period last week $ 44 up. 10 major cities 1.0mm cold rolled coils average price of 4,884 yuan, down 7 yuan than the same period last week, down 78 yuan over the same period last month.

The Opportunities and Challenges of China Steel Trade

2012 end of the world, the Mayan prophecy did not come, however, China's iron and steel industry has experienced a year real doomsday baptism; steel demand to drop steel prices continued to drop, monetary tightening, the banks pumping loan, funds flee, economic growth speed dropped, etc, the China Steel industry has been a big shock.

However, the optimism of the Chinese steel enterprises, or believe, after the big impact, Chinese steel trade markets, in 2013, there must be a big opportunity while waiting.

Opportunities one: the economic rebound, increasing government investment, sluggish steel demand will have a larger rebound.

Obviously, the 2013 steel market, given the high expectations, the first face of the domestic economy to pick up, has long been recognized, several consecutive months of manufacturing PMI index showed that China's manufacturing industry began to jump out of the trough, showing a clear active; coupled with the general direction of the countries adhere to expand domestic demand and promote development, it is foreseeable that in 2013 China's domestic consumption will be a further rebound in the auto industry is a very obvious good momentum; manufacturing industry rebound, cold rolled steel and hot rolled steel plate etc, which is demand likely to get a larger increase in the signal; this is a marked change since the fourth quarter of 2012.

Another aspect is the national macro-policy changes, the development of new towns in the direction of "Eighteen" established by the Conference, pointed the way for this year's investment focus; real estate, infrastructure, and other industries will benefit, they will start moving up; Moreover, the attendant equipment manufacturing market will also be a good situation to usher in a significant increase in orders; coupled on the 2012 Development and Reform Commission issued a series of steady growth measures, has begun to specific implementation, some of the utility by the end of the year be verified; the nearly trillion urban rail track construction project since the end of September last year, in the spring of 2013, launched one after another. Rebar, wire rod and other materials of construction steel demand is expected to continue growing.

Opportunities 2: steel trade enterprises left for the king, the short machine to carve up the market share has come.

There is no doubt that the steel industry since the crisis in 2012, so that the closure of many companies, including upstream steel mills, the triage center steel market, of course, is the steel trade enterprises; organization released survey data show that in 2012, around the country, nearly thirty percent of the steel trade and business failures or exit the industry. Dabai shu steel trade market as the country's largest steel trade concentrated in Shanghai, more than 3% of the annual GDP contribution rate in the Shanghai area near depression.

Overall, the 2013 steel prices market will be better than 2012, which is already reached a consensus; analysis, however, the steel trade enterprises in the face of the big opportunities in front of more calm response is required; good macroeconomic policy advantage, also need funding support to the implementation of specific future large investment projects to where to get enough funds, need further observation; another full of instability to the international economic situation, the financial cliff in the United States is only a temporary solution, how to defuse a brief lull greater after the crisis, but wait for the negotiations of the forces of political parties in the United States, the euro zone debt crisis continues to ferment, and unstable factors still exist; let alone domestic steel serious excess capacity, the spot market oversupply the general pattern of signs of improvement yet. So despite the new opportunities are not small, but the potential risk, and therefore need to be cautious.

Latest Trends about Steel from China in 2013

From an economic development perspective, the fourth quarter of 2012, China's economy has finally emerged tended to stabilize, but the economic stability of the foundation is not strong, is expected in 2013 or even longer, China's economy will remain stable, compared with the fast development momentum. Expected based on the above, it is expected that the China steel will enter a stage of total consumption of low growth, the domestic steel market in 2013 will show a slight price fluctuations, a stable trend of the overall operation, including iron and steel enterprise meager profit situation is difficult to be effective in improving.

The world economy continued weakness result in international steel prices fall, affecting China's steel imports and exports.

International Steel City, a drop in demand a direct impact on China's steel exports.In 2012, the weak international economy, international steel trade has shrunk dramatically intensified trade protection and trade friction, in October last year, China's exports of billet 5.14 million tons, 1-October total exports of 40.84 million tons. November, December remained practically monthly 400 million -500 million tons of export levels, and this trend continued until at least the middle of next year. This also shows that within the next two years, the balance between supply and demand of China's steel market depends mainly on the domestic market, and look forward to expanding exports to ease the pressure on the domestic market is unrealistic.

On the other hand, from the domestic point of view, the next time there is still a lot of uncertainties, but overall, in terms of domestic demand, the urbanization of the 48 put forward, people's living standards improve requirements from the ability of the consumer spending habits popularity continue to promote home appliances and consumer conditions, the industry's long-term growth space still exist. From the outside, we need to look at the international market environment is relatively stable, the recovery in demand in the United States, Europe stabilized, the Afro-Asian emerging market demand remains strong, the demand on the international market will remain basically the trend this year, is expected to export growth is expected to be flat with last year.

There will be a greater demand from the machinery industry point of view, the special properties of the steel products. The machinery industry demand for steel diversity, both ordinary steel, another high-value-added special steel. Currently, there is part of the special properties of the steel restricting the development of China's machinery industry, the much-needed iron and steel enterprises in research and development of these varieties of steel. Such as electrical equipment industry, some transformer oriented silicon steel, power station boiler heat steel, special steel pipe and other special welding electrodes for steel and other special steel imports; wear plate (thickness required and if the heavy machinery industry from 30mm ~ 120mm), special welding wire, bearing steel, etc.; Another example is General machinery manufacturing, material not only has a certain mechanical strength, but also have some of the resistance to chemical corrosion, wear and other special performance.

Comprehensive analysis, expected in 2013 Chinese steel production and apparent consumption increase, it will not reach a high level, still low growth, is still the total consumption, low-growth stage; 2013 domestic the steel market will show a small price fluctuations, the overall running stable trend, including iron and steel enterprise meager profit situation will improve.

Latest China Steel News in 2013

There is no doubt that 2012 is the last ten years, the most difficult year for the China steel industry, whether manufacturers or trading enterprises are facing tremendous pressure. Near the end of the year, the industry is looking forward to the upcoming 2013, however, the steel industry has entered a cyclical correction in the context of slow economic growth, China steel supply and demand will further exacerbate the coming year, the Steel City, I am afraid it is still hard to Sudden Impact.

For the real economy, especially the manufacturing sector ubiquitous overcapacity, big but not strong, domestic consumption, lack of motivation and other issues. China's economy is facing two problems of structural and cyclical adjustment, the GDP growth rate of about 7% to 8% will be the norm in the future.

The IMF and the World Bank have also lowered the global and China's economic growth is expected in the next two years. IMF to China's 2013 growth forecast down to 8.2%, 0.6 percentage points lower than at the beginning, the World Bank cut China's 2013 GDP growth to 8.1% from 8.6% previously expected.

It can be predicted that in 2013, China's economy will maintain slow growth, annual GDP growth rate is expected to be between 7.6% to 8%.

Comparing the 2012 steel suppliers, we can find the steel pipe and steel plate demand are larger, like ERW pipe, seamless pipes, hot rolled steel plate, cold rolled steel, etc. Besides, the steel coil always keeps a balance situation. Of course, for many industries, galvanized steel coil, hot rolled coil, cold rolled coil are playing key role for their production. We can believe these special steel coil will have a bigger supplying and demand.

Based on scale effect, reduce the pursuit of merger risk factors to consider, in recent years, China's steel production capacity is very considerable. According to statistics, this year plans to add 53 blast furnace, iron smelting capacity of about 70000000 tons, crude steel production capacity of 9.3 tons at present; in 2013, plans for additional iron smelting capacity of about 40000000 tons, then China's crude steel production capacity will reach 9.7 tons, 10 tons to close greatly approximation.

Considering the overall poor economic environment, the steel city is difficult to be a fundamental turn for the better, as well as the steel profit difficulties and other factors, the release of production capacity will be affected certainly, is expected in 2013 crude steel production in 7.3 tons ~7.4 tons, increase than 2012 2%~3%.

Since this year, domestic iron ore production capacity output grows steadily. ~9 in January, China's iron ore production reached 9.7 tons, grow 16.6% compared to the same period, predicting annual is expected to reach 15 tons. According to incomplete statistics, China new ore production capacity of more than 4.5 tons, and for many large mining projects, and belongs to the national or the local government encourages project, production capacity will be smooth release. Foreign mines, three mines in the vale of nearly 1 tons of capacity planning completed and put into production in 2013, Rio Tinto plans in 2013 production capacity reached 2 tons.

Based on the above analysis, the China steel industry overcapacity in the illness has reached the adjustment not stage, is expected next year, the main varieties of average steel prices will drop further down, the main varieties in 5% the left and right sides, low will be lower than this year, this year the high and flat or slightly low, whole year or emerged after the former high-low trend.

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.

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.

Top 5 Steel Products From China

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.

Different Kinds of Steel Products and Steel Prices

It is known that steel is widely used in many different areas, and it contains all kinds of different types. Generally, depending on the cross sectional shape, the steel can be divided into four main categories of profiles, steel sheets, steel tubes, and metal products. Of course, every big category can own several different small categories, and the related steel prices is not the same. Most the processing of steel belongs to pressure processing, which can make steel produce plastic deformation. According to the processing temperature of steel can be divided into two kinds of cold and hot processing.

Steel is an iron-carbon alloy which contains carbon between 0.04%-2.3%. The chemical composition of steel is so different, if the steel can only contain carbon steel known as carbon steel, in the actual production, in order to ensure its toughness and ductility, the carbon content is generally not more than 1.7%. And the main elements of steel except iron and carbon, it contains silicon, manganese, sulfur, phosphorus, etc.

The next, there are some introductions about several normal steel products, including steel plate, steel coil, galvanized steel,  steel pipe, etc.

Steel Plate

Steel plate is with molten steel pouring and pressed flat-shaped steel after cooling. According to different rolling ways, steel plate can be divided into hot-rolled and cold-rolled. Generally, steel plate can used as bridge plate, boiler plate, automobile manufacturing plate, etc. And hot rolled steel plate is a very big application in the industry, which is produced by hot rolling.

Steel Coil

Steel coil, is also known as rolled steel, which is can be produced by steel hot or cold pressing. In order to facilitate storage and transport, steel coil usually can be processed plate or strip, etc. Steel coil is divided into hot rolled coil and cold rolled coil, and the hot rolled coil is processing products which is in the front of the billet recrystallization, and cold rolled is subsequent processing after hot-rolled-coil. In order to enhance the resistance to corrosion of steel, you can use galvanized steel coil.

Steel Pipe

Steel pipe can be divided into two categories, including seamless pipe and welded steel pipe. Usually, seamless pipes are made of high quality carbon steel and use two different ways to produce: hot rolled and cold rolled. Welded steel pipe is rolled into a tubular steel plate on the seam or spiral seam welded. Weld steel pipes can be used for water pipelines, gas pipes, heating pipes, electrical pipes, etc.

Now the trade of steel in the world is wide, generally, I know China steel is a little cheaper comparing to other countries, therefore, more and more countries are cooperating with China steel suppliers. According to our trading experience, SteelFromChina.com is a so website, which can provide whole related information about steel products, like steel sections, steel pipe, steel tube, steel coil, galvanized steel, galvalume steel, erw pipe, etc, and you can find the latest steel prices in the site to help you compare the prices of different suppliers.