About Chinese steel industry profits

According to the latest statistics released by the General Administration of Customs, Chinese iron ore imports in November to 65.78 million tons, an increase of 9.35 million tons last month, setting a new high for the year. The face of the dependence of imported iron ore up to 60% of the current situation, "going out" of Chinese steel is becoming increasingly important to develop overseas mining rights. Before the National Development and Reform Commission, the Foreign Investment Department, Deputy Director Wang Jianjun said publicly that will increase policy support and development of enterprises' overseas iron ore development efforts.

Analysts said, In recent years, China's iron and steel industry has entered a period of steady development, the decline in iron ore demand growth, coupled with the rapid growth of the domestic ore imported ore alternative, since 2009 China's ironore imports growth is slowing down, prompting our dependence on imported ore to 60%, but still did not get rid of the fact that this long-standing dependence on imported.

Analysis. The data show that three quarters of the iron and steel industry profits down 84.1%, a decline from the previous quarter expanded 46.8 percent.The response in the industry is mainly concentrated in three areas. First, adjust the structure of the iron ore imports to ease reliance on the traditional three miners. On the other hand, the steel industry from top to bottom all want to compete for iron ore pricing right, the beginning of this year, China launched the iron ore spot trading platform, the iron ore futures are also in the pipeline.

Therefore, in accordance with the current situation, in the last month of 2012, the import and export of all kinds of steel will basically remain stable, such as stainless steel, galvanized steel and galvalume steel production and sales will not be too large fluctuations.

The data show that imported ore, less than 10% of China's mining interests. Steel Association had raised the target, the supply capacity of iron ore concentrate production for 2015 will be the total demand of less than 40% to about 45%; imported overseas iron ore concentrate, China's mining interests in imports the proportion of the total amount will be increased to 50% or more.

So, overall, the development of China's iron and steel space is still very large, especially in overseas expansion, of course, the domestic policy factors also affect the profits of China's steel, and is a critical factor. Because China steel prices advantage in international competition no longer has a dominant position, so only the continuous improvement of technology to improve the technological content of the iron and steel industry and steel, in order to gain advantage in the fierce competition in the status.