Big Steel This Year, Steel Prices Continued To Bearish City

By: weihua

Although domestic steel market for five consecutive week of gains, but signs of recovery still can not change the large-scale steel enterprises this year Ruoshi view. In the 13 end of the forum on the situation in the steel business, the meeting said the head of a large steel enterprises, the key steel industry, the economy is low, while the domestic steel overcapacity, the export situation is not optimistic.

"Not optimistic" is almost a steel enterprises in a number of steel mills during a panel discussion led by "mantra." Baosteel Group vice president Guo-Qiang Ma said that as cars, home appliances, shipbuilding and other downstream industries were under attack, so that production can play less than Baosteel Baosteel production plan this year, basically flat in 2008, pig iron, crude steel, rolled steel was 24 million tons, 2800 million, 27 million tons, has discontinued production of blast furnace will make arrangements according to the market, is still low load operation. In this case, Baosteel has been signing his contract in January, February contract has been signed 70%, a quarter of production may still fall 20%.

"Iron and steel market outlook is not optimistic, the domestic production of several major new steel plant projects will enter the market this year, while 600 million tons production capacity needs of about 12% GDP growth can be achieved." Guo-Qiang Ma said.

It is understood that Hebei Steel Group plans to make arrangements for crude steel output will reach 41 million tons, compared with nearly 9 million tons in 2008. Group Deputy General Manager Liu Mingzhe said that this year the situation is not optimistic, from the research situation, the planning of railway investment has been used as part of the country has not seen new investment, local investment is not immediate. Its 20% increase in domestic investment in fixed assets is more concerned about the implementation, because it's pulling the steel will be significantly in the second half of some. "This year's state-owned enterprises more difficult than private enterprises." Anshan Steel and Wuhan Iron and Steel

two central enterprises increased production of both, the two companies responsible person said, this is the establishment of recovery in the second quarter based on market demand, the situation is not optimistic. Angang Department of Finance and the Ministry say whether the profit is still measured in January, the firm's investment-led small and medium sized countries worried about steel production capacity to restore the impact of the market, thus driving up raw material prices. WISCO plans an increase of nearly 6 million tons of crude steel reached 33 million tons, part of the production line not yet started, construction materials and rail steel are running at full capacity, and oriented silicon steel prices began to fall, the downstream demand not work

Exports, export orders in the first quarter of Baosteel normal, but difficult to export to Southeast Asia; The Anshan Iron and export arrangements this year, 126 million tons, down Nearly half; Hebei Iron and Steel now exports also. "Now the export competition, not get the orders, even if the orders get is cheap, then the have to lose money." Maanshan Iron & Steel sources said.

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