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At the "2013 (2nd) China Steel Technology Economic High-end Forum hosted by the China Institute of Metals and the Metallurgical Industry Planning and Research Institute yesterday, Wang Tianyi, executive vice president of the China Institute of Metals, said that the steel industry is facing unprecedented difficulties. And this difficulty will continue to exist for a long time to come. At present, the difficulties faced by the steel industry are mainly reflected in the two aspects of the sharp decline in industry benefits and the increasing tension of corporate funds.
Wang Tianyi pointed out that on the one hand, steel production capacity and actual production increased rapidly, mineral prices remained high, steel sales prices continued to decline, resulting in a sharp decline in industry benefits; on the other hand, corporate debt ratios continued to increase, and their own funds decreased, resulting in Corporate funds are tight, and individual companies may even have the risk of a broken capital chain.
“The difficulty of the industry is the common result of the country’s long-term expansionary economic policies and extensive management of enterprises.†Wang Tianyi said, “The complexity of the reasons and the changes in the domestic and international situation determine the difficulty will exist for a long period of time, Xu Kuangdi’s director Chang had expected to go through 5-10 years."
“The most difficult period may be November and December. After entering the winter, the demand for the north (steel) will be reduced.†Qu Xiuli, deputy secretary general of the China Iron and Steel Association, said that the country will maintain the continuity and stability of macroeconomic policies. Large-scale economic stimulus measures will not be introduced, but the shanty renovation, urban railway construction, energy conservation and environmental protection investment and new urbanization will be increased. It is expected that the national steel demand will maintain a small growth in the fourth quarter of this year.
Qu Xiuli believes that the world economic growth is weak at this stage, but China is still the first growth of the world's major economies. It is expected that China's economy will grow by 7.8% in 2013 and maintain steady growth. Steel demand will continue to grow in the fourth quarter, but due to the impact of capital shortages, the increase will not be too large, it should be a small wave dynamic.
Li Xinchuang, deputy secretary general of China Iron and Steel Association, said that from the current situation, the country's crude steel output is still high, steel inventories continue to decline, but steel prices have not improved, and the current price of minerals is still high. "For the steel market trend in late September, the most important thing is to look at the investment and manufacturing."
According to the statistics of China Steel Association, the average daily output of crude steel in key steel enterprises in the country increased by 0.07% to 1.704 million tons in late August 2013. The average daily output of crude steel in the second half of August is expected to increase by 2.192 million tons. 0.05%. In addition, national steel inventories have fallen for 25 consecutive weeks, with a cumulative decline of 35.51%. According to my steel network statistics, the Tangshan billet index continued to decline in September. From September 2 to 13, the index fell from 96.5 to 93.6, and is still in a downtrend channel.
Domestic steel enterprises' profits fell sharply in September
Abstract After the steel industry's efficiency rebounded in August, it began to fall sharply in September. Imported iron ore prices remain high, steel sales prices continue to decline, and corporate debt ratios continue to increase, steel companies once again fall back to the difficult pattern, and the most difficult situation in the fourth quarter of this year. &nb...
After the steel industry rebounded in August, it began to fall sharply in September. Imported iron ore prices remain high, steel sales prices continue to decline, and corporate debt ratios continue to increase, steel companies once again fall back to the difficult pattern, and the most difficult situation in the fourth quarter of this year.