The Current Economic Status Impacts China Steel Prices

Since the outbreak of the financial crisis in 2008, it continued to spread and deepen. The problem of a country's total steel consumption, it has a continuous. Currently, the global steel overcapacity problem is very serious, and want to excess capacity eliminated the need for many years. Excess capacity is a global problem, and is also an important factor in the steel trade-distorting. For China, could also be too large, steel prices cannot be sustained stabilization and recovery, the growth in demand for steel, even if it is a low-growth may not be able to bring about the growth of the steel, the profits from the products. The confidence comes from the steel consumption, industrialization prior to the completion of at least the next 10 years, should be a growth momentum was maintained, but must be a low-growth.

As the representative of the European and American countries, they are the center of consumption, the center of the capital output operation of so-called reform and innovation go too far, a bubble. Developing countries in the past ten years to become the world's manufacturing center in China, the cost advantage of developing countries to developed countries transport cheap goods, their consumption of transition. We export them out of the problem by the impact of exports and the corresponding affected many areas of production appeared excess. Get a lot of the profits of the assets mainly export-oriented country, by the original export. Brought them? Their own currency appreciation and undermine the international competitiveness of other industries in their own future appreciation when the three issues need to be adjusted, the adjustment process is a fairly lengthy process. China, for example, these years of us rely on the boosting of exports to GDP pulling now export problems, domestic demand needs people continued to increase revenue, improve spending power this form of adjustment is a long.

Steel industrialization support industry, secondary industry in the process of industrialization is the highest, the entire secondary industry in the national economy dominant process is the process of industrialization, industrialized secondary industry what is the construction industry and industrial composition. GDP growth in the process of industrialization first contributor is the second industry, the development of the secondary industry must bring consumption. Is the fastest per capita steel consumption in the industrialization process of the mid-to late industrialization must be from high growth to low growth. To a post-industrial society overall steel consumption will fall from the peak. It will continue to fall after a long time.

For steel situation in 2013, we believe that steel suppliers and production and consumption still have confidence, but we must fully understand that it is a low-growth, because the GDP in 2013 will this year. The tone of monetary easing should also be sustained. Especially a steady growth in new infrastructure projects will encourage investment to stabilize. After about 4-5 trillion out, especially the last two years on infrastructure, investment in fixed assets is highly controversial, but now look at the central government put forward, steady investment is an important measure of steady growth.

Generally speaking, it is a new year for Steel production in 2013, although, we also meet all kinds of problems, the economy of world is becoming better and there will be more good policy for Steel development in China, therefore, as long as we believe, whatever steel products like steel coil, steel pipe, steel sections, angle iron, ERW pipe, Galvanized Steel, etc, the prices will be proper level.

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.

The Latest Steel News Reviews from China

Due to the impact of the 2008 financial crisis, by certain obstacles to the economic development of the world, but from a global point of view, the economy is slowly getting better, most people are quite optimistic. Various countries have introduced a related program to stimulate economic development, increase investment in national infrastructure, to increase employment, help people to increase confidence in the economic recovery. Especially in Australia, Europe, and Asia. Therefore, the from steel demand side, demand of steel suppliers is still relatively large, but in the supply price might be relatively large fluctuations.

Terms of supply and price of Chinese steel, China steel import and export is still relatively active, although experienced several relatively large price fluctuations, the sudden appearance of the highest price, suddenly steel prices fell to a minimum value, but from now appears that the supply-demand relationship, or basically stabilized. Below to illustrate further, you will get more options to buy steel or more partners from different steel characteristics, based on the following information.

First of all, about features of galvanized steel, provide you with some introduction to help you better understand the characteristics of the galvanized steel. The galvanized steel applicable range of the welding parameters is small, due to the contact surface of low resistivity, low hardness, the low melting point of the zinc layer, so that the contact resistance is reduced, the current uneven field distribution, affect the formation and size of the nugget. Shorten the electrode life, due to the low melting point of zinc layer, the surface easy burning, alloy the contamination electrode formed on the electrode surface, easy to overheat and distort, reduce electrode life. Prone to welding splashes, affect the stability of the solder joint quality.

As far as the production and supply of galvanized steel, with the development of the domestic economy, especially in the automotive, appliance and construction industries, the demand for galvanized steel is greatly increased. And in the process, equipment, due to the continuous improvement of the technical level, has been made in the development of product variety. Of course, came out to meet the needs of China's economic construction and development, many Chinese steel mills have increased the intensity of the export, but also on product quality and price, compared to other countries of similar products and more advantage, so it has got the favorite of many countries, such as galvanized steel coil, cold rolled steel, hot rolled coil, etc.

Secondly, it is about angle iron, angle steel demand is very big, because it has features other steel products, angle iron applications is very wide, such as widely used in various building structures and engineering structures, such as beams, bridges, transmission tower, hoisting and transport machinery, ships, industrial furnace, reaction tower, container frame and warehouse shelves, etc.

For China's the angle iron supply and demand relationship for Chinese imports, exports Angle each a certain volume, mainly imported from Japan, and Western Europe. Exporting region is mainly to Hong Kong, Macao, Southeast Asia, Latin America and Arab countries. Export production enterprise mainly for the steel plant in Liaoning, Hebei, Beijing, Shanghai, Tianjin and other provinces and cities (rolling mills).

Of course, the above is a general instruction about different Chinese steel, Because China is regarded as a steel resource rich countries, and has a lot of advantages in steel production technology, so the steel price is quite reasonable to be accepted by many countries, Therefore, the procurement of steel from China is also a very good choice for lots of foreign enterprises, according to China's current policy, they can also get a lot of favorable conditions.

Know a lot Steel Suppliers about Steel From China

As we all know that steel plays a very important role in modern society, following the rapid development of economy, the requirement of steel is becoming more and more, besides, the quality and types of steel are able to be higher standers. In order to get most suitable steel products and prices, the best way is to compare several different steel suppliers to know a lot of related information. Nowadays, there are more and more companies are interested in China Steel, because there are so many powerful steel manufacturers in China which can provide all kinds of high quality steel products.

In fact, steel has a vast market in the world, although it can not be renewable, it can be recyclable. In other words, we can get a lot of benefits from steel products, firstly, it is so functional versatility and flexibility, some very important products can be made of steel easily; secondly, it owns the feature of environment, safety and health, therefore, it can be used in many different areas. Because of its robustness and durability, it can be widely used as all kinds of constructional material.

Since steel owns many wonderful advantages than other materials, its requirement is so huge all over the world, now many companies feels like to get high quality steel, they can get some related information via traditional ways, but it also can be limitation, now, with the development of internet, it can provide us a wide plate to get more colorful product information, especially, steel from china suppliers own their website to show all sorts of steel products to the whole world customers. Like very famous BaoSteel, AnGang, Benxi, LYsteel, etc.

Indeed, internet has provided us a very convenient way to get detail information about steel suppliers and prices. And you can easily search almost all China steel manufacture company via Internet, these wonderful steel company owns very strong technology and can provide different demand products with high quality and services. 

As far as I know SteelFromChian.com is so professional steel services website, like providing total information about steel suppliers, steel prices, and it can also help you get the most steel products what you want, because it has a cooperation with China’s many famous steel company, therefore, just visiting the website, you can get the most comprehensive service to help you get useful steel information.