Monday, August 26, 2013

Circulation environment deterioration reservoir effect weakened

At the meeting, China united steel nets editor-in-chief Hu Yanping made entitled "China's steel market and industry development trend analysis" keynote speech.

She points out, from the perspective of the operation cycle of large, since 2011, the root cause of the steel price JIS MS plate flat welded forged flange decline lies in economic by upward cycle into a downward cycle, and 8% in 2011 to enter the following interval operation; Four trillion role in 9 to 10 years effect obviously, 11 years basically retreated; Iron and steel circulation industry credit crisis; Production capacity to maintain rapid growth.

Downturn in the market at the same time, in Long Radius 90 Deg carbon seamless elbow fact, steel prices in line with global commodity run trend, the CRB index will turn downward trend since the financial crisis, the domestic steel prices in line with this. According to statistics, cisa loss of 699 million yuan, in June 86 member enterprises in the first half of the total profit of 2.267 billion yuan, sales profit margin of only 0.13%. If remove noncore earnings, main business for the actual losses. At the same time, the key enterprise asset ratio rose to 69.5%, the highest since 2006.

Reported: Shanghai steel traders amount decreased ASTM A106 seamless carbon steel tube by 50%, reduce 15-20% in north China, other regions appeared different degree of reduced. In the rest of the traders, most in the downsizing, reducing steel mills DaiLiLiang, through changing the way such as offices and cut staff to reduce cost, gambling market is less and less, some enterprises exist in name only. Steel circulation industry continued to deteriorate, the market function significantly weakened reservoir, the fundamental reason is: (1) trader decline; (2) and downstream extrusion; 3. Money is tight; (4) legal environment.

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