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.

China Steel Prices Trends Analytics

According to the latest market report, in March, more than half of the release of the downstream demand is still "slow" trend of the ups and downs of China steel prices, will directly affect the the spot steel city merchant mentality.In the past week, the major varieties of steel spot prices generally fall varieties weekly decline in more than 1%, which showed a larger hot-rolled steel.

According to the analysis, in the steel sheet market, the price decline has deepened.According to the review of the professionals in the market, the current round of steel price decline continued to the present, the domestic plate prices have fallen for 15 trading days from late February. Baosteel Plate April ex-factory price increase, but the price movements in the spot market are not with the formation of a "synchronization" effect, pessimism spread. This is mainly due to the downstream demand the release of poor, the complexity of the mentality of buyers, the rising steel trading business under constant pressure, shipped arbitrage willingness. Hot rolled coil decline is even more evident, Shanghai, Hangzhou, Jinan price weekly decline in the 100-190 yuan. Upside down and spot market prices due to higher pricing of some of the leading steel mills factory, serious, even if the margin constraint, a loss of serious traders or no choice but to give up to continue the implementation of the procurement plan.

Steel raw material prices also fell overall. According to related reports provided by the relevant agencies, the continued strength of the iron ore market, and finally transferred to the accelerated downside track. Ore in the domestic market in Hebei iron concentrate prices continue to fall, a weekly decline, t price of $ 20, the steel mills purchasing more cautious maintain low inventory strategies, thinly traded market. Imported ore prices fell sharply, 63.5% grade Indian iron ore fines Quote $ 134.5 per ton, down $ 13.75 a week; Platts 62% grade iron ore index of $ 133.75 per ton, down $ 13.25 a week. The Mine City market outlook is expected or downward trend, most of the buyers have fewer choices procurement.

Many factors affecting the iron ore spot market. Bureau of Statistics data show that the first two months of China's average daily crude steel output was 2.1263 million tons, the highest of the highest level for the same period in history, a high level of crude steel production, a huge inventory of steel oversupply further exacerbate the contradictions for more pessimistic steel prices, coupled with the introduction of the property market regulation and control of the five countries ", again stir around the real estate market, and in turn have a negative impact on the steel industry. Beijing International Mining Exchange believes that the downstream industry the continued bearish conduction to the spot price of iron ore, triggered last week's rapid decline. Short term, this downward trend will continue.

Overall, the volatility of the steel market in China is still getting bigger, and now is the national series of policies and implementation of a critical period in the mechanism of state regulation, the China Iron and Steel must carry out reforms in order in the world steel occupy a more favorable market low. Whether it is a large demand for hot-rolled steel and cold-rolled steel, the demand for middle-level galvanized steel, aluminized steel, as well as a triangular steel, etc., and their prices will in a reasonable price range.

Hot Rolled Steel From China

Recent data shows, State five rules promulgated led to relatively large fluctuations in the steel market, traders depressed mood, the market purchases enthusiasm weakened, closing the atmosphere is poor. Construction steel sheet products have appeared slipped sensitive hot rolled steel price decline.

Generally speaking, Domestic major cities Ф25mm three rebar average price of 3849 yuan (t price, the same below), compared to 4 or 6 yuan; the domestic key cities Ф6.5mm high line an average price of 3,718 yuan, compared with $ 4 or 4; domestic prioritiescity ​​5.5mm average price of hot rolled coil is 4013 yuan, down 37 yuan over the 4th; 1.0mm cold plate of the domestic focus of the central city average price of 4,939 yuan, compared with the 4th down 6 million; the domestic key cities 20mm plate average price3953 yuan, compared with 4 or $ 18.

China's GDP growth target this year as well as the increase in CPI of view, stable growth, control inflation is a main tone, means in the context of the loose global liquidity, China's policy-oriented under the premise of stable growth to prevent inflation rise will not sacrifice everything in order to maintain growth. Then for the steel market, in in financial effect amplification push up the price of rising channel, but also consider the needs of the Chinese entity performance, pull the power in the market is affected by the cost factor in the case of rapid increase in inventory, demand starts slow, weak people in the short term, steel prices has yet to reverse the signs of elevation. But the demands of the market holding stability has been strengthened, the steel city today is expected to gradually stabilize.

Factors affecting the domestic construction steel market, mainly the following aspects:

One is the leading steel mills steady mainly. The domestic steel prices shocks down, not many steel mills to adjust to the ex-factory price. Hebei Iron and Steel, Shougang Changzhi guide price of early March raised by 100 yuan / ton, while the East China Shagang rebar prices flat in early March, the whole month of February making it up 100 yuan / ton. Overall, domestic steel prices and market prices generally upside down, but at the cost pressure of circumstances, steel mills offer more to maintain strong price making it up are more limited.

The second is the majority of the raw material prices down. According to the monitoring data show that as of March 1, the Tangshan area carbon billet price of 3250 yuan / ton, down from Friday 50 yuan / ton; Jiangsu Province scrap price of 2900 yuan / ton, unchanged from Friday; Shanxi coke price 1470 yuan / ton, unchanged from Friday; taste dry Tangshan area, 66% iron ore price of 1170 yuan / ton, down from Friday 20 yuan / ton. At the same time, the external disk offer grade 63.5% Indian iron ore fines of $ 152.75 / ton 2.75 U.S. dollars / ton, down from Friday.

Third postganglionic steel stocks continue Masukura. According to the monitoring data show that as of March 1, the major varieties of steel inventory total of 21,583,600 tons, weekly chain Masukura 6.78% inventory increase has slowed compared to the previous two weeks, the downstream demand this week must start signs. Now, the total social stock has the same caliber of year-on-year increase in more than 1 million tons, and has hit a record high level of general annual inventory and more experience Masukura 4-6 weeks and then transferred to the downstream channel, so late The destocking task is arduous.

Of course, China policies will make some affect on China steel market, especially, steel prices will be affected. And according to internal prices of steel, the China steel prices will have a proper level.

Steel market situation in China

Recently, the domestic steel spot market to pick up slightly, but the demand side is still a lack of strong support. The performance impact of each macro side fundamentals, China steel prices will be back shock pattern.

According to the monitoring, the domestic spot steel prices being "first growth and stable". Last week, affected by the good news of the macro side, the steel market confidence has been boosted, and steel prices generally rose slightly. However, due to the deep-rooted Steel City "off-season" effect, rising steel prices and lack of demand for support, the price of steel products stabilized again.

According to the analysis, in the sheet market, the overall situation is a sign of strength, reversing a previous downward trend, however, the Wuhan individual market is still slightly dropped. The market analysts believe that the macro data show that the economy has been warmer, the capital market is also strong, which boosted the confidence of the steel market. Steel plate prices with the potential to rise, but "high" shipments rose difficult. The weather is getting cold, the downstream steel enterprises procurement reduce the total demand is weak, or the more obvious. Also the consolidation of hot rolled coil prices stabilized, the dominant trend of the market has been divided, the Shanghai market is basically stable, Tianjin, Beijing and other manifestations of decline. Even up areas, the businessmen's willingness to raise steel prices are still relatively low. At a time when the year-end season, merchants repayment pressure greater surface tension of funds, large-scale "stockpile" phenomenon is unlikely to occur.

In the construction steel market, overall prices were slightly up. However, with the northern part of the region once again snowfall, the downstream demand is further suppressed, the turnover of the steel will be blocked. Think some steel trading business, taking into account the prices of raw materials such as iron ore, steel billets is still strong, the other specifications of the individual market segments less resources, and the bottom of the construction steel market there is still some support for limited downside, in short term, steel prices are still vulnerable fluctuations.

Relevant agencies said that some downstream industries of steel began to exhibit varying degrees of signs of warming, which is more or less conducive to the increase in demand for steel. But it must be remembered, steel prices have been more than a year of decline, businesses lingering fear, more cautious mentality, plus funds face superimposed adjustment factors, the China steel will continue to maintain a weak state.

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.

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.

Choosing Most Reasonable Steel Coil for Yourself

Now the application of steel has a long history, with the development of advanced technology, there will be more and more iron and steel products are produced. In additon to frequently used steel pipe, steel tube, steel sheet, there is another steel product which is becoming wide to use, that is steel coil, because it is facilitate storage and transport, it has been widely used.

Steel coil, also called as rolled coil, is produced from hot rolled steel, cold roll forming. It is known that steel coil is convenient to store, transport and process, and there are lots of companies interested in it, such as you can easily process it into plate, strip, etc.

Generally speaking, steel coil is divided into hot rolled coil and cold rolled coil. Hot rolled coil is pre-recrystallization in the billet processed products. Cold rolled coil is a follow-up process of hot rolled coil and steel coil weight is usually around 15-30T. Besides, the general user does not have open-book device or the amount is limited. Therefore, follow-up coil processing industry will be promising.

Hot rolled coil is the beginning of rolling slab continuous casting slab or as raw material, the reheating furnace heating, high pressure water descaling into the roughing mill, roughing material by cutting head, tail, re-entering the finishing mill, the implementation of computer controlled rolling. The performance of hot rolled products is so good, such as high strength, good toughness, easy processing and good weldability molding, etc. Therefore, it is widely used in ships, cars, bridges, buildings, machinery, pressure vessels and other manufacturing industries.

In contrast, cold rolled coil is at room temperature directly into a certain thickness of the rolling roll with a rolling machine and rolled into the entire volume of the strip. Usually, it is used in in automobile manufacturing, machinery manufacturing, light industrial, civil and construction, etc.

In additon, there are many related products of steel coil, according to the different application, they all play a key role in production. For example, galvanized steel coil owns excellent corrosion resistance, paint, decoration and good formability, it is widely used in construction, household appliances, vehicles, container manufacturing, mechanical and electrical industry, to almost all areas related to basic necessities. In recent years, increasing demand for galvanized steel coil, production increased quickly in the United States, Japan and other steel producing countries, galvanized steel coil occupys a high proportion.

Certainly, there are all kinds of steel coil, like galvalume coil, PPGI, PPGL, etc. because of different fucnitons or featrues, they can be used different areas and play an important role.