In the first quarter, the national steel market demand, the apparent consumption of crude steel drop than last year drop, crude steel production in many years some fell, industry-wide losses. As to cancel the effect of the tax rebate policy, as well as the international market of our country iron and steel products by an increase in trade disputes, and the “double reverse” case steel export growth will decline.
“In the first quarter, the national steel market demand, the apparent consumption of crude steel by an enlarged than decline for all of last year, crude steel production in many years some fell, industry-wide losses.” China steel industry association executive vice President of Mr Zhu recently in the steel association conference in 2015, the second information to make the above statement. He 20 words summed up in the first quarter of the steel industry operation: “demand, production decline, falling prices, environmental pressure, the overall losses.”
Export to rational enterprise must, against the risk of trade friction
Cisa statistics show that in the first quarter, the national steel exports of 25.78 million tons, year-on-year increase of 7.46 million tons, an increase of 40.7%. Exports in January of 10.29 million tons, exports in February of 7.8 million tons, exports of 7.7 million tons, in March is fall from month to month. Imported steel 3.23 million tons, 3.23 million tons of fell, fell 10.0%. Net exports amount to 23.49 million tons of crude steel, steel year-on-year increase of 8.15 million tons.
“At the beginning of 2015 countries cancelled the export tax rebate of some steel variety, month by month steel year-on-year exports fell in the first quarter, year-on-year growth is on the high side mainly because of lower base in the first quarter of last year, as cancel the tax rebate policy effect, and the international market of our country iron and steel products launched the” double reverse “cases an increase in trade disputes, and steel products export growth will fall.” Mr Zhu said, there is still demand due to the international market, and have spread both at home and abroad, China’s steel export competitiveness is still more apparent, exports will not significantly reduced. Enterprises should respect the rules of the local market, further completes the export product upgrades, improve proportion of high-end products.
Iron ore prices continue to drop
Iron ore imports rose slightly. China’s imports of iron ore 227 million tons in the first quarter, up 2.28% from a year earlier. Among them, 80.51 million tons of iron ore imports in March, year-on-year increase of 12.57 million tons, an increase of 18.5%. Quarter of iron ore imports the average price of $69.69 / ton, down 45.1% year-on-year. Import prices in March for $67.03 / ton, import prices of 15 consecutive monthly decline. Iron and steel association released imported iron ore prices fell below $70 / ton in early 2015, the beginning of march fell below $60 / ton. On April 2, imported iron ore prices fell below $50 per ton, on April 10, the lowest $46.84 / ton, mid to late April rapid rebound, April 27, has been rose to $57.1 / ton, import ore prices from rising too fast is mainly increased imports rose in March and the high cost of mine production is likely to expand and thus to minimize the expected iron ore supply.
Steel prices fell
Steel prices continue to fall. End of march, iron and steel association CSPI steel composite price index was 75.43 points, 0.37 points higher than in late February; 19.4 points lower than the same period last year. Since April, steel prices continue downward slightly, the third week in April steel composite price index fell to 73 points, a new low have index since records began. Falling steel prices for the downstream steel industry to reduce costs, enhance the competitiveness of the international market make a huge contribution to the industry.
Crude steel production fell by 1.7%. In the first quarter of the national production of 176.54 million tons of pig iron, fell 2.3% year on year; 200.1 million tons of crude steel production fell 1.7% year on year; Production of 266.4 million tons of steel products (including repeat material), up 2.5% from a year earlier. Average nissan 2.2233 million tons of crude steel, 61300 tons more than the fourth quarter of last year, an increase of 2.84%. In the first quarter of China’s crude steel production accounted for 50.02% of the world’s steel production.
Iron and steel enterprise inventory levels higher than normal. End of march, large and medium-sized steel enterprises inventory of 16.64 million tons, more than the earlier this year of about 3.75 million tons, 40000 tons more than the same period last year. According to a survey, most of the iron and steel enterprises in the first quarter inventory increase. Business inventories is on the rise in recent years, the social stock is on the decline, mainly due to the decrease in the number of steel trade, business and enterprise expansion caused by direct channels. According to the iron and steel association statistics, April 22 city social inventory of 11.23 million tons, five varieties of steel fell by 2.13 million tonnes.
The steel industry investment in fixed assets down further. In the first quarter, the steel industry investment in the fixed assets of 83.1 billion yuan, down 6.8% year-on-year. Ferrous metal CaiXuanYe investment of 16 billion yuan, down 12.3% year-on-year, compared with 1 ~ 2 month decline increased by 7.9%; Black metal smelting and rolling processing industry investment 67.1 billion yuan, down 5.4% year-on-year, compared with 1 to drop to expand 1.3% in February.