2009 iron and steel production capacity of the fast recovery, and full-year net exporter of crude steel decreased 94 percent compared with 2008, increasing upward pressure on domestic steel prices
Although the Chinese government policies and measures to stimulate the economy greatly stimulated the demand for steel, domestic steel enterprises in 2009 focus on increasing output without increasing it.
February 3, "Financial" reporter learned from the China Iron and Steel Industry Association, the steel association statistics, 68 medium-sized iron and steel enterprises steel production increased by 11.27%, product sales revenue was down 10.14 percent, 33.64 percent decline in profits.
The primary reason that led to this situation is the large-scale investment and no change in the domestic steel market supply and demand situation, iron and steel production capacity of steel quick-release makes the market difficult to maintain balance between supply and demand. Steel association data show, the domestic steel market prices bottomed out in April 2009, five at the end CSPI (Chinese steel price index) reached 98.14 points, 2.58 points higher than the four at the end. It is precisely in the domestic steel production in May 2009 a full recovery, Nissan levels in June, a record high in September with the trend, making the domestic steel market by the strong upward trend of resistance. Steel Association data show that in 2009 annual CSPI average 103.12 points, down 33.54 points compared with 2008, a decline of 24.54%.
In addition, in 2009 China imported 17.632 million tons of steel, steel billet imports 4.585 million tons, equivalent to 23.3425 million tons of crude steel imports, an increase of 6.7276 million tons, an increase of 40.5%; exports of steel 24.5965 million tons, 43.2 thousand tons steel billet exports, equivalent to crude steel export of 26.2096 million tons, down 38.0369 million tons, down 59.1%. Import and export of offset, equivalent to 2.8671 million tons of crude steel net exports, over the 2008 47.6316 million tons, reducing 44.7645 million tons, down 94%. China's annual crude steel production accounted for 8% of the iron and steel returning the domestic market, further increase the upward pressure on domestic steel prices.
