Latest Trends about Steel from China in 2013

From an economic development perspective, the fourth quarter of 2012, China's economy has finally emerged tended to stabilize, but the economic stability of the foundation is not strong, is expected in 2013 or even longer, China's economy will remain stable, compared with the fast development momentum. Expected based on the above, it is expected that the China steel will enter a stage of total consumption of low growth, the domestic steel market in 2013 will show a slight price fluctuations, a stable trend of the overall operation, including iron and steel enterprise meager profit situation is difficult to be effective in improving.

The world economy continued weakness result in international steel prices fall, affecting China's steel imports and exports.

International Steel City, a drop in demand a direct impact on China's steel exports.In 2012, the weak international economy, international steel trade has shrunk dramatically intensified trade protection and trade friction, in October last year, China's exports of billet 5.14 million tons, 1-October total exports of 40.84 million tons. November, December remained practically monthly 400 million -500 million tons of export levels, and this trend continued until at least the middle of next year. This also shows that within the next two years, the balance between supply and demand of China's steel market depends mainly on the domestic market, and look forward to expanding exports to ease the pressure on the domestic market is unrealistic.

On the other hand, from the domestic point of view, the next time there is still a lot of uncertainties, but overall, in terms of domestic demand, the urbanization of the 48 put forward, people's living standards improve requirements from the ability of the consumer spending habits popularity continue to promote home appliances and consumer conditions, the industry's long-term growth space still exist. From the outside, we need to look at the international market environment is relatively stable, the recovery in demand in the United States, Europe stabilized, the Afro-Asian emerging market demand remains strong, the demand on the international market will remain basically the trend this year, is expected to export growth is expected to be flat with last year.

There will be a greater demand from the machinery industry point of view, the special properties of the steel products. The machinery industry demand for steel diversity, both ordinary steel, another high-value-added special steel. Currently, there is part of the special properties of the steel restricting the development of China's machinery industry, the much-needed iron and steel enterprises in research and development of these varieties of steel. Such as electrical equipment industry, some transformer oriented silicon steel, power station boiler heat steel, special steel pipe and other special welding electrodes for steel and other special steel imports; wear plate (thickness required and if the heavy machinery industry from 30mm ~ 120mm), special welding wire, bearing steel, etc.; Another example is General machinery manufacturing, material not only has a certain mechanical strength, but also have some of the resistance to chemical corrosion, wear and other special performance.

Comprehensive analysis, expected in 2013 Chinese steel production and apparent consumption increase, it will not reach a high level, still low growth, is still the total consumption, low-growth stage; 2013 domestic the steel market will show a small price fluctuations, the overall running stable trend, including iron and steel enterprise meager profit situation will improve.

The situation of China cold rolled steel in March 2013

In February, in China, the market price of cold rolled coil to the rising main. February 28, China's major cities 1.0mm cold plate an average price of 4952 yuan (t), up 111 yuan from the end of January. Shanghai, Tianjin, Beijing 1.0mm Omo box board market price of 4860 yuan, 5050 yuan and 5100 yuan, or 170 yuan, 100 yuan and 100 yuan. The other second-tier market price or 60-170 yuan.

Cold rolled steel prices rise, there are mainly two reasons; the one hand, a further rise in steel prices cost more sturdy supporting role. Businesses hoard, on the other hand, a very few, limited resources, market liquidity, resulting in fewer cold-rolled steel products, but prices continue to grow. For Spring Festival is expected to once again good psychological fermentation postganglionic the inertial pull up the role, the pace of rising market prices before and after the Spring Festival has never stopped.

Specifically, the following prices up in February, the domestic large steel mills in the mainstream again blew the horn rose. Especially early in the New Year's Baosteel will surprise the first to raise the price policy in March after the holiday, other steel mills raised prices well ahead of preheating. Indeed, after the Chinese New Year, Shougang, Angang Steel new one price policy have to implement, the March cold rolled rises in 200-250 yuan. The Hebei steel of cold rolled steel producers will also follow the trend of price increases policy, the latter part of the cost of supporting a further consolidated. Just has not been started due to the the postganglionic downstream demand, the price after a space up Xuzhang power tends to weak businesses mainly changed to a stable and a wait-and-see, expected real market revitalization in about 3 months late.

On the other hand, during the Spring Festival market resources around the part arrival, but the arrival of relatively limited, only a few cities in the bulk arrival. Moreover, some steel mills busy exports, a decrease in the amount of domestic resources. However, businesses hoard goods, stocking seek and secure the relatively rare a large number Dongchu operations. Therefore, after the Spring Festival, the market resources is small there is a growing, but still at a low overall inventory. The salable few resources, support a certain price. But if the latter continue to add resources, demand start slow price "late spring" may only adjustment will be more limited. Late start gradually, demand and prices are expected to return to a rising channel.

According to the previous experience, each year, in March and April, is the the downstream demand gradually start of period. With the weather warming, the downstream procurement will gradually start to recover, and then one after another active this year, the pace of urbanization is a "policy year" downstream producers overall than last year's strong vitality, is a good cold rolled steel market. The overall market is expected to occur in March and April, a "peak", downstream needs to start in early March or significantly slow the true sense of the market recovery is a process, not small adjustments to exclude individual time period.