The first time in my three years of monthly mesh deals of hard metal

Posted on May 10, 2009 @ 3:02 am
by Zou

The influence of trades of iron alloy to be very careful to deal with fact

This year, trades of iron alloy in the household market, development to a certain span, mostly intensified in the main heading of silicon iron alloy, hot-rolled iron alloy plates, etc. volumes and varieties. Due to the pointed down turn in iron alloy trade items and trades relation development in March this year, the Chinese billet into a snare trade of timber has been the position, this is the first time since three years.

Interviewed immediately and steel industry experts, who generally thinks that, although to judge from the current situation, yet not constitute a long-term trends may be a stage, but must continue to observe this difference, the prudent response.

Import “all of a swift advance in” propelling down hard metal market

According to statistics of relevant departments show that in February this year, China imported 1.09 million tons of steel, an increase in January than 220,000 tons; imports 310,000 tons steel billet, an increase of 18 million tons of steel imports from the ring than to reverse the down trend point of view, to increase more than 25%; to March, 1.27 million tons of steel imports, representing a growth in February and 16.5%; 460,000 tons of imports of billet, and in March than increased. Month in March, the total wood blanks have been converted to net imports, which is in 2006 our country became a net exporter of steel after the first.

According to “My steel and steel” and other knowledge, for instance hard metal mills and Magang who saw that the hard metal deal “all of a swift advance in”, chiefly condensed concurrently in the size of hot-rolled plates, billets, and other kinds oriented silicon steel. Volume of hot-rolled plates and billets in the first two months of this year have been a “net import”; oriented silicon hard metal at the end of February, early March and the end of March have distilled on the happening of the attainment of imports. Shanghai Steel Trade and Chamber of Commerce stakeholders to consider the prevailing quite low-cost foreign volumes of hot-rolled plates are still “down stream.”

According to investigation, several worldwide steel-producing nations of the exchange rate alterations, the considerable depreciation of the currency relation to the dollar, may be a rush in trades of the going by car forces. In supplement, China’s iron alloy market demand, a pointed shrinkage of market demand in China is somewhat good, the worldwide community and the Chinese finances is anticipated to choose up, take benefit of the use of cost affray in the Chinese market share, foreign iron alloy has become an inescapable alternative to find a way out.

According to reporters that the enquiry, the household sales of iron alloy goods has been sensed in varying qualifications the influence of imported products. This effect is not echoed in the allowance of primary, but in the general cost fluctuations. Magang Lee Marketing and Baosteel International sales are a reflection of capacity of trades of hot-plate and other goods in the amount can not state too much, but the household iron alloy charges will “pull down” some time before capacity tons of household thermal cost of more than 3,100 yuan, trade charges have been underneath 3,000. Oriented silicon iron alloy market is subject to the influence of low-cost imported goods, tons of worth early in January from 4 million dropped drastically from 2.2 million actually, the down turn is the biggest of all diversity of steel.

Do not have the “long-term trend,” the circumstances

Response to alterations in iron alloy trades, Baoshan Iron and Steel Institute of ascribe Wu Ying, China Metallurgical Industry Planning Research Institute, vice leader of Lee and the freshly conceived “My metal and steel,” Jia liang qun data bureaus and other professionals accept as factual that the boost in iron alloy trades is expected to extend for some time. However, the present position to work out, on the entire occurrence is a stage, does not signify that China’s iron alloy trade and trade items of inflection point.

According to the examination of stakeholders, there is now a mesh monthly deal, trade overseas of hard metal is only hampered by a family member performance. In February this year, China’s hard metal trade overseas size has been lessened to 39 months to the least purpose in March, though a small pick-up flexible chain of bonds, but still continue low. Relative to trade overseas, as long as the advance in deals, on the exposed circumstances of mesh imports. However, the evolution of the market movement of worldwide crude hard metal goods produced in China in augmentation to close to 40% of the rate of descent in the long-term support is impractical, as the global short method of the restoration of goods produced, will move ahead hard metal costs and worldwide hard metal costs pick-up, which will slowly generate an surroundings conducive to trade overseas of in the household hard metal charge space. At the matching time, the heading down insist on in the household hard metal costs will be “top” of the consequence of hard metal deals to inhabit, after all, the size of deals of hard metal use in the in the household steel and hard metal plate in the total fraction of less than 3%.

Since the international economic urgent position, the household iron alloy commerce in a tough position. At present, a equitably very broad agreement that the commerce is: the adversities of the metal and iron alloy commerce the most direct cause is that the economic urgent position in a rapid contraction of demand as a outcome, the supply charges of excavation and the vertical down turn in iron alloy charges initiated by the decrease of a large area; to be the market a little warmer, the iron alloy unseeing rehabilitation and output, iron alloy charges extend to increase, producing in Steel City afresh, “bottom.” And more deep reason: the structure of surplus capability and critical, in specific the reality of a large number of in turn around output capacity; developed engrossment is reduced, crude iron alloy output enterprises less than the mean dimensions of one million tons, grading the peak five iron alloy output enterprises of the nationwide total only about 28%; metal ore assets and the reduced grade of maritime security, proficiency to reply to alterations in the market; immature market scheme of iron alloy, metal and iron alloy goods more than 150,000 vendors, operators are inclined to more speculative; goods homogenization serious. The influence of trades of iron alloy market is a “plus or” factors.

Prudent to deal with different situations

News interview in the investigation of contacts of industry believes that the structure of China’s steel imports, it is necessary to distinguish between different situations, to make a different analysis in order to respond in a targeted manner.

It is comprehended that in the Chinese hard metal deals to feed processing and processing of imported about 54 out of 100 more than those of hard metal after the windup of processing of trade overseas, in the household use did not in item, is embodied in the demand for foreign markets; deals for in the household use accounting for about 45% of steel. Imports of plate hard metal, are chiefly of in the household goods produced can not generate or can not get concurrently the wants but in addition of high value-added yield, embracing the breadth of less than 1 mm cold-rolled sheet with the specifications, the breadth of 0.3 millimeters less than the yardstick cold-rolled lean & P band and so on, the deal dependency oriented silicon hard metal is as high as 51.4%. Products in the in the household hard metal development has not yet been concluded the upgrading of the structure, the deal of high value-added yield is inevitable; For the matching fluctuations in the deal of yield, it reflects the interaction between in the household and foreign markets, the need to make an very correct assessment.

Experts believe that for the time being, blocked the export of steel, rising inventories of domestic resources, the impact of steel imports “Three meet,” will certainly change in the competitiveness of domestic steel market situation, worthy of sustained attention. Strong dependence on the import of high value-added products should be adjusted in the implementation of industrial revitalization planning efforts to enhance capability of independent innovation, promote the high-end “import substitution” strategy; for relatively low-end steel products, but imports will help moderate domestic iron and steel industry restructuring and reduction of iron ore are directly dependent on, do not have to worry too much about.

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