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Steel exports surge, investors may increase fluctuations in the steel city [recommend]

Answers:1   |   LastAnswerAt:2011.06  

Constantine Dodge 
Asked at 2011.06.07 00:54:52
Steel exports surge, investors may increase fluctuations in the steel city [recommend]
answer Tony Blake  Answered at 2011.06.07 00:54:52
Steel exports surge, investors may increase fluctuations in the steel city 1-4 months total exports of steel 21.28 million tons, an increase of 132% domestic steel exporters are put on a "blowout" market. The latest customs statistics data show that in April this year, China exported 7.16 million tons of steel, since the data for the history of China's steel exports the most a single month. In addition, 1-April China's total exports of 2,128 tons of steel, an increase of 132%. Experts believe that the rapid growth of steel exports in April was mainly export tax rebate policy adjustment by the State and the upcoming implementation of the policy implications of steel export license administration, export business due to assault. Spread into a huge impetus to export under the "China's steel industry led by domestic demand," the industrial policy, the Government has been too fast to curb steel export growth momentum and work on many occasions to adjust steel export tax rebate policy, including the April Finance lower part of the Department of special steel and stainless steel plates, cold rolled products 76 tariff lines of the export tax rebate rate and abolition of hot-rolled coil, hot rolled sheet metal and other non-membrane and another 83 tariff lines of steel export tax rebates. However, due to the existence of the huge price difference at home and abroad, the export tax rebate policy effect and is not optimistic. In this connection, the Chinese Iron and Steel Association official said that if the export tax rebate rate cut can not contain the excessive increase in steel exports, will take more stringent measures. In this context, the Ministry of Commerce and General Administration of Customs jointly issued April 30 on some steel exports subject to export licensing policy demonstrates the government's determination to curb the high export of steel. Experts interviewed believe that far-reaching impact of steel export licenses. As detailed in the policy implemented since May 20, May steel exports surprise phenomenon will continue to exist, but the outlook of steel export order would be regulated. Once the trend of steel products to curb high export and domestic supply and demand pressures will subsequently increase. Exports will be effectively curbed the high steel as energy consumption, polluting industries, national industrial policy made clear that the development direction of China's steel industry development model is based on domestic demand rather than export-oriented development model. But in the international market demand situation, prior to April this year, China's steel production steel exports accounted for respectively 13.5%, 14.2%, 15.7% and 20%. At the same time, China's steel exports low value-added products, it is difficult for the elimination of backward production capacity. Therefore, the Government's determination to control steel exports can understand. Experts say it difficult to work in the market means the case, the use of administrative means to control steel exports, it is inevitable. By administrative means, export of steel export qualification and varieties, the number of reviews, in accordance with the objectives of government regulation to control the rhythm of steel exports, steel exports will play an immediate control effect of the situation. An industry source said, the reality proved to run the export tax rebate in the current high steel prices in international market stimulation, is difficult to control steel exports on the rise. And if on some steel exports subject to export licensing control steel exports not only to continue to increase, but also help promote many of the steel industry and steel market coordinated development of economic relations. "For ordinary steel exports subject to export licensing system is to effectively control the increasing trend in exports of steel products. Whether the content of the provisions of the policy itself, or the practical application of the reasonableness of the export volume of steel will hold firmly in the Government macro-control objectives. "industry source said. Steel export license management will effectively regulate the market order of steel exports. According to statistics, in 2006 enterprises engage in the business of steel exports to the actual number of 11,661, 11,661 export companies in this, only 387 companies exported more than 1 million tons, accounting for a total amount of steel exports of steel last year's 88.05 percent of total exports . An industry source said the steel export license management is conducive to a healthy market order, exports of steel construction, to prevent the vicious interaction between enterprises lower prices affect the prices of total exports of steel, and enterprise focus of a regional export trade friction caused by . Fluctuations may be aggravated by steel market outlook export license management policy from May 20 onwards. Industry insiders said that in this time, companies apply for export licenses in order to avoid the trouble and difficulty, if the conditions are ripe, the inevitable choice in the May 20 assault prior to export, it can be predicted in May will be steel market remains export volume and export prices in the double pull, to maintain the good running of the situation. But for the afternoon, the experts said is not optimistic. It is understood that a quarter of the export tariff of 83 accounted for the total export volume of steel products 68.35%, once 83 countries strictly limit the export tariff of steel, steel products will inevitably cause a decline in total exports, increasing domestic resources supply pressure. Experts say the government introduced a series of control from the steel export policies and the relevant departments declared on many occasions, in 2007 steel exports are likely to remain level in 2006. Inertia due to export control policy of the effect will appear in the second half, the second quarter level of exports may remain in the first quarter, net exports of 24 million tons is expected in the first half. If you maintain the level of exports in 2006, the second half of the scale of net exports of steel must be reduced to 1,000 tons, which means that the second half of the exports will be a hard landing. However, the State Securities of a new research report that the steel export licenses will enable the Government to obtain the number of active control steel exports, as to whether a shock would have on domestic steel prices, steel exports depends entirely on the attitude of the government approach. In order to ensure stability of steel prices, the Government will consider the market's appetite. Experts also said that there are positive factors supporting the market. Arrangements under the State Council this year to shut down and eliminate backward iron smelting capacity of 22.55 million tons, backward steel-making capacity of 24.23 million tons. Thus, with the elimination of outdated steel production capacity to make substantial progress in steel production growth has been restrained, the pressure to reduce supply, which will to a large extent, the decline in exports of steel to resolve the impact on the market. The industry argued that steel exports are subject to certain controls, will definitely increase the pressure of market resources. However, some pressure, promote the coordinated development of policy-making is perhaps the original intention. If a reasonable and coordinated social stock steel market order not be established, the market is not subject to pressure on the ability of future steel market volatility will increase.
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