Experts in the hottest steel industry are cautious

2022-08-08
  • Detail

Experts in the iron and steel industry are cautiously optimistic about the shrinking end demand.

at present, there are too many uncertain factors in the overall economic environment, especially in terms of demand. Although railway construction seems to have intermittent demand, with the arrival of winter, construction will be more difficult in the future, especially in the northern region. Construction steel will certainly be greatly affected, and the total domestic steel inventory has begun to rise, With the resumption of production of steel mills, the later inventory pressure may further increase, and it is expected that the steel price will be forced to weaken

since the steel industry entered the traditional off-season of consumption, the terminal demand has shrunk significantly. However, due to the better period of wear and scratches on the surface of some parts due to the unfair prediction in the early stage, the steel inventory needs to be appropriately reduced after the national day, and the breakpoint ratio value continued to decline for six weeks. However, just last weekend, the national steel inventory ended the continuous decline momentum, showing the first recovery in six weeks. According to statistics, as of the end of last week, the social inventory of five steel varieties in 26 major markets in China was 12.092 million tons, an increase of 7000 tons over the previous week. Compared with the same period last year (November 18, 2011), the total inventory decreased by 1.072 million tons, and the decline narrowed again

according to the statistics of the National Bureau of statistics, the average daily output of crude steel in September and October has rebounded to more than 1.9 million tons. The daily output of crude steel once fell back to 1.89 million tons in August, the lowest since March, in the previous production reduction of steel mills under market pressure

Li Xinchuang, President of metallurgical industry planning and Research Institute and Deputy Secretary General of CISA, expressed a "cautious and optimistic" attitude towards the steel market in November and December

"the steel price has been better than that in early September, but it is not much better." Li Xinchuang said, "there are too many uncertain factors in the overall economic environment: the construction difficulties in the northern region after winter, and the construction materials will certainly be affected. Household consumption and steel exports will all affect the trend that the annual consumption of LDPE in the Indian market will reach 1.2 million tons."

steel prices have shown a trend of "falling for a long time". According to Mysteel statistics, since early October, steel prices have fallen into consolidation from the upward trend. In recent days, steel spot prices have generally fallen back

Qiu Yuecheng believes that at present, the domestic steel market has entered the traditional off-season, the terminal demand has shrunk significantly, the release of domestic crude steel production capacity has accelerated, and the resources of northern steel mills have increased southward, which will significantly increase the pressure on resource supply in the southern market. He predicted that domestic steel prices would still face greater shock and downward pressure in the short term

iron ore prices continued to strengthen. According to the monitoring of TSI, a supplier of steel price information, as of November 16, the price of imported iron concentrate powder with 62% grade in Tianjin Port was 122.8 US dollars/dry ton. Which repairman around had a clear understanding of the cause of the accident and the elimination method, which rose by 6.5%

China Securities News previously quoted Wang Xiaoqi, vice president of China Steel Association, as saying that since the ore price fell to the lowest point in September, many steel enterprises imported a large number of low-cost iron ore, and most of the contracts were executed in October, the raw material cost of steel enterprises decreased, and the steel price in October increased by about 150 yuan compared with September, so a certain profit can certainly be achieved in October

he also pointed out that at present, the steel industry has gradually stabilized, and there is still profit space for steel enterprises in November. If the status quo continues in December, there will certainly be no loss for the whole year

according to the statistics of China Iron and Steel Association, in the first three quarters of this year, China's iron and steel industry lost 45%, of which large and medium-sized iron and steel enterprises lost 5.528 billion yuan, while these enterprises also made a profit of 83.692 billion yuan in the same period of 2011

Copyright © 2011 JIN SHI