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National Iron and Steel Group in 2008 cut, resulting in the steel industry "cold" coming

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mary ford 
Asked at 2011.06.07 01:16:05
National Iron and Steel Group in 2008 cut, resulting in the steel industry "cold" coming
answer Tommy Fan  Answered at 2011.06.07 01:16:05
2008 National steel group cuts, resulting in the steel industry "cold" coming in 2008 has always been a remarkable year, Premier Wen Jiabao said, "China's economy in 2008 is the most extraordinary year, but also the most difficult." From the This year's global economic point of view, resulting in all sectors fell across the board. iron and steel industry is no exception. In September 2008 the steel import 32 million tons; January-September imports of 371 million tons, down 22.0%. According to Chinese customs Oct. 14 news, China in September 2008 imports of tungsten steel scrap 32 million tons; January-September imports of 341 million tons, 11.0% less than last year. China in August 2008 caused by imported steel and other materials for the 67,829 tons; January-August reached 3,094,500 tons of imports. States in September 2008 to 23 million tons of steel imports; 1-8 months of imports of 128 million tons, "in Under the present situation. If the situation does not improve and adjust the market, then the cut to cut, the cut must stop production. "This was October 12's Shougang" C "experience-sharing meeting, the first Steel Group Chairman Zhu Jimin waved helplessly. This sentence tells the status of the domestic steel industry. From the domestic steel prices have dropped 10 weeks in the situation. The first week after the National Day, the domestic steel prices plummeted an average of 11.5% decline in about 8 years as the domestic steel market, the steepest decline week. In fact, in July this year, China Iron and Steel Association continues to receive from all over the steel mills cut production, cut-off Report, which many of them Wuhan Steel, Tangshan Iron and Steel that large enterprises. Strong steel prices plunge Xie was a rolling mill in Tangshan, a director of a more prosperous, as the market supply and demand imbalance cut within three months of continuous experience, is now rolling mills have closed. Xie strong plant just one of many steel mills in Hebei, a only. In 2001, Xie Qiang funding 20 million yuan with a few friends opened a rolling mill partners. "At that time a great market demand." Xie Qiang said that when the cost to recover the second year began to profit. With iron ore, coke and other raw material prices increase year by year, the steel mill drastically reduced profit margins. "But still you can barely support." Xie Qiang said that because of rising costs, while steel prices are rising. According to his memories of the first half of this year from last year, gradually rising price of steel has reached 5980 yuan per ton, the highest point. "After the Olympics had intended to see whether the market will improve, and then turn the machine up, but only two months the price of steel have fallen to 3600 yuan / ton, but no one would dare take the downstream plate, the production is a loss, it is better waiting for the opportunity. "Xie Qiang said. Although now in the traditional "gold nine silver ten" of the steel consumption season, but the steel market demand situation has not improved, the volume was light, mainstream varieties of steel fell across the board. The continued downturn in the trend of market prices, steel companies have lowered steel prices. September 19, Baosteel will be billet, general cold plate, the hot dip galvanized sheet and other species down 800 yuan per ton. Then Steel, Handan Iron and Steel, Maanshan Steel, Laiwu Steel and other steel mills have cut 25 corresponding product prices. As of October 10, the National 4 months steel prices have fallen to about 30%. Metallurgical Industry Association of Hebei Province, vice president of Song Jijun view, this situation will continue into next year. From profit to loss a month through this situation, Xie Qiang have experienced in 2005. Agreement in 2005 iron ore prices rose 71% in first half of the series of steel prices rise, then started to decline, the major steel prices cut 5% of the collective. "This year and the situation in 2005 was the biggest difference is that the market demand, but the high cost of production cuts." Xie Qiang said the steel market this year, almost one day a price, demand declined significantly. "Domestic steel prices from profit to loss of experienced only a short period of one month." Yang Siming, general manager of Nanjing Iron & Steel United Co., Ltd., told reporters. According to him, Nangang July profits also reached more than 4 million, but to a marked decline in August. "One long products prices from 7 at the end of 6400 yuan / ton to 8 at the end of 4800 yuan / ton. Some varieties up to loss of 800 yuan / ton, the average losses are 400-500 yuan / ton." Yang Siming feels that the market down too quickly. He worked out an account: According to the Dragons in September calculate the breakeven point, Dragons need to cut 30% to achieve the best results. In order to keep the existing market is not competitive steel snatched, Nanjing from August start automatically cut 10%, but also loss of every month from 10 to 20 million yuan. Shougang also encountered similar problems. According to Zhu Jimin introduction, as of October 9, Shougang all kinds of steel prices dropped from the highest point this year, the 800-2400 yuan / ton range, the current building material prices have dropped to 3400-3600 yuan / ton. "At present, the entire iron and steel enterprises have reached consensus on industry trends, price promotions, cut the winter will be the norm." Said Zhu Jimin, Shougang set in the September break-even point has been the breakdown. Loss of its production of steel 1,000 yuan a ton, it is better to take measures to avoid the edge waiting for an opportunity. If the market really does not change, then cuts will be implemented. Steel cut, cut rife September 29, Hebei Iron and Steel Group, Shandong Iron and Steel Group and other senior copolymer several large steel companies in Handan, Hebei, planning "rescue", and initially set a 20% cut plan. And Hebei Iron and Steel Group October 9 decision will be based on 20% cut and then cut 10% -20%. Shougang also hinted that if the market downturn will consider production cuts, Baosteel, sand steel mills have the same idea. "As long products is expected to substantial loss of all, Dragons will be forced to cut 10%, there may be increased to 30% later." Yang Siming said. The current rate of decline in market price of steel has gone beyond its capacity, the market price of steel has been below cost, cut, cut into small and medium steel companies the only choice. Hebei Metallurgical Mining Administration Office, according to the relevant responsible person revealed to reporters, a number of small steel mills in Tangshan had not started three or four months, while Handan, Tangshan, Langfang, etc. Most small and medium sized steel enterprises has been in the beginning from the August cut-off or semi- shutdown state. Tangshan area, a total of 41 steel production lines, only 12 are in production status. "More than one third of the steel mills in Hebei Province in the cut, half cut state, and two-thirds of the steel mills have taken the appropriate measures." Metallurgical Industry Association of Hebei Province, vice president of Song Jijun said. Cut-off or part of the small and medium steel mills cut include Hangzhou Iron and Steel, Pingxiang Iron and Steel, Fujian three Min steel. Jiangsu, a steel boss also told reporters, Jiangsu and Zhejiang had already cut a number of small businesses closed, not closed the small iron and steel enterprises is a difficult business, some have a very active export of iron and steel as raw material manufacturers have closed down, some companies have been laid off employees. With steel prices further correction, the recent large and medium steel companies have also taken a "limited production price", "to sell production quotas," the business strategy adjustments. According to CISA statistics, 7-8 months, large steel enterprises in China are already operating profit, SMEs are at a loss edge. It is understood that since the second half of this year, Anshan Steel, Wuhan Iron and Steel, Maanshan Steel, TISCO and other 32 steel production, Henan Province is a private steel enterprises have ceased production has reached 40%. Suppressed demand and cost double, "the decline in demand, and the dual pressures of high costs, making the steel some breath." Shandong Huaxin Industry Co., Ltd. Vice President Lu Zhaohui that steel mills are now faced with the problem is not profitability, but is the urgent matter of survival. It should be noted that in August this year, the domestic pig iron and steel production in 10 years, a rare negative growth on a monthly basis. "Rising costs, the price decline in the iron and steel enterprises are facing the dual pressures of a direct consequence of July steel, pig iron output of less than 6 months, in August than in July were down, which is seen for many years." CISA Executive Vice Long Luo said. Meanwhile, high prices of raw materials has been suspended in the domestic steel prices head a "sword of Damocles." Luo said that in recent years, the continuous rise in iron ore prices, a lot of pressure to the steel mills, especially this year due to raw materials, fuel prices rose sharply, steel bearing capacity has reached its limit. According to statistics, from 2003 to 2008 an open international iron ore price rise has been for 6 years, including Australian ore and Brazilian ore cumulative increase reached 410%, respectively and 376%. According to the China Steel Association analysis of the first half of this year, pig iron and steel enterprises and medium-sized manufacturing costs average increased by 57.57%, plus other costs such as increased and increasing export tariffs, steel prices increased the cost of more than 2000 billion yuan. As the world economic downturn and decline in steel prices, Pohang Iron and Steel in the fourth quarter export price negotiations were difficult. Now home appliances, and other long-term purchase customers said that international steel prices downturn can not accept the offer POSCO. POSCO has been canceled the contract the third quarter of EGI exports to China. Now the fourth quarter of POSCO's cold-rolled and hot-rolled and galvanized sheet export quotations is 1,000 to 1,100 U.S. dollars / ton (FOB), due to equipment maintenance, reduce the supply of the fourth quarter, Pohang Iron and Steel, said the maintenance of the price. And the sector, said customers can not accept the offer put forward by Pohang Iron and Steel, has reached contract also requires customers to cut prices, so the fourth quarter, POSCO exports will reduce the likelihood is very great. "This 'winter' is triggered from the downstream demand and therefore will not be short-lived, and will be long." Yang Siming pointed out that the pattern of the current steel market, the downstream demand for steel companies were waiting to see the state, real estate, industrial , the recent marked decline in home appliance and other industries, it is difficult to bear the high price of steel cost pressures in the steel industry costs to downstream obstruction. So from now appeared to be in the steel industry circumstances, it may be recent or a long period of time can be not very stable prices, but also is at a low level, the situation in the whole situation is how the market economy!
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