The improvement of the hottest steel price seems t

The improvement of steel prices seems to be a flash in the pan, and the pressure for steel enterprises to turn around losses is still large.

steel prices are improved according to the provisions of the Metrology Law of the people's Republic of China, and the pressure for steel enterprises to turn around losses is still large.

China Construction machinery information

Guide: this year, China's steel industry has fallen into industry wide losses since the new century. Although the members of the Steel Association turned around their losses in October, the main steel industry was still below the profit and loss line after deducting the investment income. Crude steel production has declined due to the previous shutdown and maintenance of steel enterprises; Coupled with the recovery of downstream demand, steel prices have been short

this year, China's steel industry fell into the loss of the whole industry since the new century. Although the members of the Steel Association turned around their losses in October, the main steel industry was still below the profit and loss line after deducting the investment income. Crude steel production has declined due to the previous shutdown and maintenance of steel enterprises; Coupled with the recovery of downstream demand, steel prices have improved briefly. However, at present, crude steel production has rebounded again, and steel prices have also retreated, putting heavy pressure on the steel industry to turn losses throughout the year

steel prices are facing a downward trend

overcapacity has been the core problem that has plagued the development of China's steel industry. Since July this year, member enterprises of Sinosteel Association have controlled output through measures such as production reduction and maintenance, which has alleviated the continuous decline of enterprise benefits. However, crude steel production rose again in November, and the future trend of steel prices is still facing a test

Wang Xiaoqi, vice president of CISA, once said, "if the daily output of steel is maintained at 1.9 million tons or less, the steel industry can generate benefits. Once the volume is increased, the industrial benefits will drop sharply." However, at present, the output of crude steel in China has rebounded again

according to the data of the National Bureau of statistics, the total output of crude steel in China in November was 57.47 million tons, and the average daily output reached 1.916 million tons, with a month on month increase of 0.52% and a year-on-year increase of 13.7%. The cumulative output of crude steel in January was 660 million tons, with a year-on-year increase of 2.9%

while crude steel output rebounded, steel prices also corrected. Industry insiders pointed out that although the steel market fell mainly in November, the plate price was relatively strong, and many steel mills chose to increase horsepower production to reduce losses as much as possible. In the future, the weather will gradually turn cold, the demand for steel will decline, and the downward pressure on steel prices will further increase

from the situation of the 15 steel enterprises that have disclosed the annual performance forecast, the steel enterprises are not optimistic about the annual performance forecast. Eight steel enterprises including Maanshan Iron and Steel Co., Ltd., Nanjing Iron and Steel Co., Ltd., Shagang iron and Steel Co., Ltd. and Chongqing Iron and Steel Co., Ltd. are expected to suffer losses throughout the year, while companies such as Wuhan Iron and Steel Co., Ltd., Shaogang Songshan iron and Steel Co., Ltd. and Daye Special Steel Co., Ltd. are expected to see their net profits fall by more than 50% year

the CISA said that if the steel production increased again in the fourth quarter, the situation in the first quarter of next year would be difficult to be optimistic. At present, it is very difficult for steel enterprises to turn losses all year round

iron ore supply will increase

as a large steel production country, China's iron ore has been controlled by others for a long time, and the relatively high ore price has devoured most of the profits of steel enterprises, bringing great pressure to the production and operation of enterprises

this year, the price of iron ore fell sharply from a high level. However, with the recovery of steel production, iron ore prices fluctuated upward in November. The data showed that the price of domestic iron concentrate at the end of November was 866.36 yuan/ton, up 11% month on month. The elongation at break of PE was 90% - 950% (among which the elongation of linear low density polyethylene LLDPE was higher) 3.49 yuan/ton, up 1.58%; The CIF price of imported iron ore (fine ore) was 122.32 US dollars/ton, up 8.04 US dollars/ton month on month, equivalent to RMB 900.09 yuan/ton, up 57.63 yuan/ton month on month, up 6.84%, 4.26 percentage points higher than domestic mines

according to the China Iron and Steel Association, at present, 60% of China's iron ore demand depends on imports, and the domestic demand can only meet 40%. In the future, with the increase of domestic production, the proportion of domestic mines will increase to more than 45%, but the pattern of large proportion of imported mines cannot be changed. Zhujimin, executive vice president of CISA, also said recently that the pressure of iron ore resource cost has had a huge impact on the production and operation of steel enterprises in recent years

at present, domestic mines are accelerating the pace of construction. The industry predicts that by 2016, the domestic iron concentrate can increase by 80million tons to 100million tons, and the world iron ore is expected to increase by billion tons. At present, the global trade volume of iron ore is about 1.1 billion tons

insiders pointed out that Chinese enterprises have accelerated their entry into the field of overseas iron ore production through overseas mergers and acquisitions, equity participation and other ways, and the cooperation with foreign mining enterprises is also increasing. The supply of iron ore will increase significantly in the future, which means that the iron ore price will gradually enter the downward channel, and the fluctuation range will gradually narrow