The first time in my three years of monthly snare trades of iron alloy

by Professional editor working for Mannequins & Forms.

The impact of imports of steel to be careful to deal with observation

This year, trades of iron alloy in the household market, development to a certain span, mostly intensified in the main heading of silicon iron alloy, hot-rolled iron alloy plates, etc. volumes and varieties. Due to the pointed down turn in iron alloy trade items and trades relation development in March this year, the Chinese billet into a snare trade of timber has been the position, this is the first time since three years.

Interviewed directly and iron alloy commerce professionals, who usually conceives that, whereas to referee from the present position, yet not constitute a long-term tendencies may be a stage, but should extend to observe this distinction, the careful response.

Import "all of a swift advance in" propelling down hard metal market

According to statistics of relevant departments show that in February this year, China imported 1.09 million tons of steel, an increase in January than 220,000 tons; imports 310,000 tons steel billet, an increase of 18 million tons of steel imports from the ring than to reverse the down trend point of view, to increase more than 25%; to March, 1.27 million tons of steel imports, representing a growth in February and 16.5%; 460,000 tons of imports of billet, and in March than increased. Month in March, the total wood blanks have been converted to net imports, which is in 2006 our country became a net exporter of steel after the first.

According to "My metal and steel" and other data, for example iron alloy mills and Magang who discerned that the iron alloy trade "all of a rapid boost in", mostly intensified in the capacity of hot-rolled plates, billets, and other diversity oriented silicon steel. Volume of hot-rolled plates and billets in the first two months of this year have been a "net import"; oriented silicon iron alloy at the end of February, early March and the end of March have concentrated on the occurrence of the appearance of imports. Shanghai Steel Trade and Chamber of Commerce stakeholders to contemplate the present somewhat low-cost foreign volumes of hot-rolled plates are still "down stream."

According to examination, some global steel-producing nations of the exchange rate modifications, the extensive depreciation of the currency family member to the dollar, may be a stream in deals of the propelling forces. In augmentation, China's hard metal market demand, a spiky shrinkage of market demand in China is quite good, the global community and the Chinese economic procedure is looked frontwards to to select up, take superiority of the use of charge struggle in the Chinese market share, foreign hard metal has become an unavoidable option to find a way out.

According to reporters that the investigation, the domestic sales of steel products has been felt in varying degrees the impact of imported products. This effect is not reflected in the amount of principal, but in the overall price fluctuations. Magang Lee Marketing and Baosteel International sales are a reflection of volume of imports of hot-plate and other products in the quantity can not say too much, but the domestic steel prices will "pull down" some time ago volume tons of domestic thermal price of more than 3,100 yuan, import prices have been below 3,000. Oriented silicon steel market is subject to the impact of low-cost imported products, tons of value early in January from 4 million fell drastically from 2.2 million currently, the decline is the largest of all varieties of steel.

Do not have the "long-term trend," the conditions

Response to modifications in hard metal deals, Baoshan Iron and Steel Institute of accuse Wu Ying, China Metallurgical Industry Planning Research Institute, vice head of Lee and the recently brought ahead "My steel and steel," Jia liang qun knowledge instrumentalities and other skilled population trust that the advance in hard metal deals is in all likelihood to carry on for some time. However, the prevailing circumstances to ascertain, on the total happening is a stage, does not intend that China's hard metal deal and trade overseas of inflection point.

According to the investigation of stakeholders, there is now a snare monthly trade, trade items of iron alloy is only hampered by a relation performance. In February this year, China's iron alloy trade items capacity has been decreased to 39 months to the smallest issue in March, whereas a minor pick-up string of connections, but still stay low. Relative to trade items, as long as the boost in trades, on the susceptible position of snare imports. However, the evolution of the market tendency of international crude iron alloy output in China in supplement to almost 40% of the rate of down turn in the long-term upkeep is unrealistic, as the worldwide short method of the restoration of output, will propel iron alloy charges and international iron alloy charges pick-up, which will step-by-step make an natural environment conducive to trade items of household iron alloy cost space. At the identical time, the down high ground force on household iron alloy charges will be "top" of the influence of iron alloy trades to reside, after all, the capacity of trades of iron alloy utilisation in the household metal and iron alloy plate in the total percentage of less than 3%.

Since the worldwide fiscal critical purpose, the in the household hard metal development in a arduous position. At present, a without bias extensive concurrence that the development is: the annoyances of the steel and hard metal development the most direct justification is that the fiscal critical purpose in a swift contraction of demand as a effect, the store costs of prospecting and the precipitous descent in hard metal costs produced by the forfeit of a large area; to be the market a little warmer, the hard metal visually ruined rehabilitation and goods produced, hard metal costs carry on to get higher, effecting in Steel City over, "bottom." And more intense reason: the structure of overload scope for and serious, in actual the alive of a large number of rearward goods produced capacity; highly-developed attentiveness is small, crude hard metal goods produced enterprises less than the midpoint amount of one million tons, position the apex five hard metal goods produced enterprises of the countrywide total only about 28%; steel ore supplies and the small stage of maritime security, skills to answer to modifications in the market; immature market procedure of hard metal, steel and hard metal yield more than 150,000 sellers, operators are likely to more speculative; yield homogenization serious. The consequence of deals of hard metal market is a "plus or" factors.

Prudent to deal with divergent circumstances

News interview in the enquiry of associates of commerce accepts as factual that the structure of China's iron alloy trades, it is essential to differentiate between distinct positions, to make a distinct investigation in alignment to reply in a aimed at manner.

It is appreciated that in the Chinese iron alloy trades to feed processing and processing of imported about 54 per hundred more than those of iron alloy after the culmination of processing of trade items, household utilisation did not in detail, is embodied in the demand for foreign markets; trades for household utilisation accounting for about 45% of steel. Imports of plate iron alloy, are mostly of household output can not make or can not rendezvous the desires but furthermore of high value-added goods, encompassing the width of less than 1 mm cold-rolled sheet with the specifications, the width of 0.3 millimeters less than the benchmark cold-rolled slim & P narrow piece and so on, the trade dependency oriented silicon iron alloy is as high as 51.4%. Products in the household iron alloy commerce has not yet been accomplished the upgrading of the structure, the trade of high value-added goods is inevitable; For the identical fluctuations in the trade of goods, it reflects the interaction between household and foreign markets, the need to make an unquestionable assessment.

Experts believe that for the time being, blocked the export of steel, rising inventories of domestic resources, the impact of steel imports "Three meet," will certainly change in the competitiveness of domestic steel market situation, worthy of sustained attention. Strong dependence on the import of high value-added products should be adjusted in the implementation of industrial revitalization planning efforts to enhance capability of independent innovation, promote the high-end "import substitution" strategy; for relatively low-end steel products, but imports will help moderate domestic iron and steel industry restructuring and reduction of iron ore are directly dependent on, do not have to worry too much about.

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