2013 domestic steel prices may be low and high

At the 2013 Construction Machinery Product Development (Beijing) Forum, Li Xinchuang stated that in 2013 China's crude steel production and consumption will show a trend of low growth, crude steel production is expected to be around 746 million tons, and apparent consumption of crude steel. About 700 million tons.

Li Xinchuang stated that there is a serious surplus in China's steel production capacity. This is due to the current industry management system, which only restricts large-scale state-owned enterprises. It has almost no restrictive effect on small and medium-sized enterprises, and in particular the enthusiasm of local governments for expanding production capacity remains unabated, because steel It is able to maintain higher taxes and play a greater role in contributing to GDP output. This has made the overcapacity in the iron and steel industry even more serious, and the homogenous competition has become more fierce. Under the economic downturn, losses have been severe.

According to data released by the Ministry of Industry and Information Technology of Li Xin, 80 key large and medium-sized iron and steel enterprises in 2012 achieved a total sales revenue of 3.5441 trillion yuan, a year-on-year decrease of 4.3%; a profit of 1.58 billion yuan, a year-on-year decrease of 98.2%, and a sales margin of almost zero. 0.04%.

“The 1.58 billion yuan profit also includes the profits of iron and steel enterprises in investment and trade. In fact, according to statistics, these 80 steel enterprises have lost 42.7 billion yuan in the iron and steel industry,” said Li Xinchuang.

In terms of steel prices, China's steel prices will remain low in 2012, and will be supported by demand and cost support in 2013. It is expected that steel prices will be higher than in 2012, but problems such as overcapacity and homogeneity competition cannot be resolved in the short term. It is difficult for steel prices to rise sharply from last year. The overall forecast for the year is low, high, and upward.