Abstract China Iron and Steel Industry Association recently released a report that in 2017, China's steel market demand is expected to remain stable, but due to the more complex domestic and international market environment, the steel industry is still in a transitional period, the overall market will not undergo major changes, steel prices are difficult grow rapidly. ...
China Iron and Steel Association recently released a report saying that in 2017, China's steel market demand is expected to remain stable, but due to the more complex domestic and international market environment, the steel industry is still in the stage of transformation and recovery, the overall market will not undergo major changes, steel prices are difficult to significantly rise.
In 2016, steel prices rose sharply, and the steel industry reversed the deep loss situation and achieved profitability. In the first 11 months, the industry realized a total profit of 33.15 billion yuan, compared with a loss of 52.9 billion yuan in the same period last year.
Ma Guoqiang, president of the China Iron and Steel Association, said that in the face of the market situation in 2017, it is necessary to be full of confidence and to be soberly aware that although the steel industry has turned a profit, it has only come out of the trough and has not completely left the predicament. The whole industry is still operating at a low profit, still facing many difficulties and problems, and cannot be blindly optimistic.
The report believes that resolving excess capacity and eliminating backward production capacity are the key to the smooth operation of steel prices. In 2017, the de-capacity work of the steel industry will continue to advance. The backward production capacity of the strip steel and medium frequency furnace will gradually withdraw from the market. However, from the overall situation, the oversupply situation in the domestic market is difficult to fundamentally reverse in the short term.
The report predicts that domestic steel production will remain at a high level in 2017, while steel exports are declining, so steel prices are unlikely to continue to rise sharply.
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