"1 month, China's economy made a good start, continued to maintain a steady and rapid growth trend, the domestic market, steel prices showed a slight upward trend continued; the international market is subject to economic recovery, scrap and other raw materials of the impact of factors such as rising prices of steel significant rebound in the price. "China Iron and Steel Industry Association recently on the domestic and international steel market in January to conduct an analysis that in January by the trend of the domestic economy to improve, the consolidation of steel industry to maintain growth, as well as factors such as rising prices for raw materials of the impact of market confidence has been further strengthened, the domestic market is not short off-season, the trend of steel prices steadily, but the oversupply contradictions are still more outstanding. Maintain the market competition order, insist on selling production quotas to achieve a basic balance between supply and demand, and further improve economic operation quality and efficiency of the steel industry this year, an important task.
Steel market prices continued to rise slightly
According to the China Iron and Steel Association analysis of the domestic market, steel prices in January rose. One end of the month, CSPI domestic composite steel price index 109.18 points, up 2.78 points late last month, an increase of 2.61%. Compared with the same period last year rose 1.49 points, an increase of 1.38%. January, 8 major varieties of steel shown an upward trend.
A package of measures at the national security driven by growth in the national economy stable and rapid growth momentum in January will be renewed. According to statistics, in January national automobile sales hit record highs, and 1.6148 million respectively, complete the 1.6642 million, ring rose more than 5% and 17%; Chinese new ship deliveries of 4.92 million dwt, up 40.5%; Manufacturing Purchasing Managers Index (PMI) 55.8%, since May last year, since the second highest point, the 10th consecutive month above 50%; 353.1 billion kwh of electricity consumption society as a whole, growth of 2.7%. The above data show that China's national economy tend to rise to the good trend of consolidation, driving steel demand growing.
In January, iron ore and metallurgical coke prices rose by a big margin, domestic Tie Jingfen, import spot ore and metallurgical coke prices rose ring 10.17%, 11.36% and 11.73%; scrap, pig iron prices rose by 4.40% and 5.95 %; coking coal prices rose by 3.86%; Brazil and Western Australia to China sea freight prices rose, ring than the respective increases of 0.89% and 0.18%. Prices and raw materials of the continuing rise in sea freight, so that the cost of steel production has risen, driving steel prices.
Affected by the impact of the macroeconomic situation continued to improve, market confidence has been further strengthened, circulation providers and end users of the situation is more optimistic about the market demand for the late start after the Spring Festival market demand for reserve resources to start, leading to the main varieties of steel, the social stock increased. At an end, the country's 26 major steel market in five kinds of steel inventories totaled community to 13.67 million tons, up 1.35 million tons more than ring, an increase of 10.9%. Of which: wire, rebar inventories rose the most obvious, namely, the chain increased by 16.5% and 25.2%; hot rolled, cold plate stocks rose by 6.0% and 4.3%; the board inventories rose by 1.6%.
As the United States, the European Union and Japan, Korea and other economies, gradually moving towards recovery, global steel demand increased. By the scrap and other raw materials of the impact of higher prices in the international market steel prices upward trend in the second consecutive month, and the increase from the previous month expanded significantly. An end, CRU International composite steel price index rose to 159.8 points, up 9.9 points over ring, an increase of 6.6% last month to expand by 5.9 percentage points.
Concerned about the uncertainty in the latter part of the market
China Iron and Steel Industry Association analysis, in 2010 the State of the effects of policies to stimulate economic growth will continue to appear, the national economy will maintain steady and rapid growth of steel demand for the domestic market will maintain a moderate growth. Meanwhile, with steel exports further, recovery and restructuring of the steel industry, eliminating the backward, through mergers and acquisitions work progresses, the domestic market supply and demand will be eased. However, by the rapid growth of steel production, social and higher inventories, as well as growth in external demand uncertainty and other factors, the latter part of the market volatility in steel prices will continue to run the main, and with the international market price movements, the trend showed higher volatility.
The increase in fixed asset investment in steel demand driving the steady growth of the main factors. In China, turned to domestic demand-led model of economic growth, continued growth in domestic consumer demand, will further increase the demand for steel. At the same time, inhibit the policy excess steel production capacity will be beneficial to eliminate backward, mergers and reorganization and restructuring and new steps. Recently, the State Council issued a "Circular on further strengthening the work of elimination of backward production capacity of the notice" letter to the Ministry of Public formulated the "iron and steel industry mergers and acquisitions guidance" and "iron and steel enterprise production and operation of existing regulatory and management measures" such as policy, will iron and steel industry in the mergers and reorganizations, eliminating the backward, trade access and other aspects of the work and further results. This year will eliminate backward iron smelting capacity of 21.1 million tons, steel-making capacity of 16.9 million tons, to the end of 2011, will phase out 400 cubic meters and below, and below 30 tons of blast furnace and converter, electric furnace smelting facilities, etc., thus inhibiting the excessive growth of production capacity and ease contradictions in the domestic market oversupply.
Showed an increasing trend of international market demand will help steel export growth. In January, China's net export of 1.54 million tons of steel for 6 months, the chain growth of net exports. Improvement in external demand situation, the more favorable to China to further expand exports, but also help alleviate the pressure on the domestic market oversupply.
China Iron and Steel Industry Association, also reminded businesses, should pay attention to the latter part of the market uncertainties: First, as the global economic recovery, the steel-producing States in the fast-recovery capacity, the global steel supply increased considerably. January, 66 countries and regions in the world's steel-producing 109.238 million tons, an increase of 25.9%, I made steel 48.694 million tons, an increase of 18.2%, the market oversupply contradictions are still more outstanding. Second, continued high domestic steel stocks, the market will also produce a certain pressure. As one end of the country's 26 cities to reach 13.67 million tons of steel stocks, the chain increased 10.9%, down inventories should be a process. Maintain the market competition order, insist on selling production quotas to achieve a basic balance between supply and demand, and further improve economic operation quality and efficiency, is an important task of the steel industry this year.
