Steel demand growth is slowing down the highly competitive steel industry

Since 2013, the domestic steel industry as a whole showed the "high yield, 'high' demand, low price" feature. In the real estate industry since the recovery in the second half of last year, the fourth quarter of 2012, investment in infrastructure projects rebounded well on urbanization and other positive factors are expected to stimulate the downstream industry significant improvement in steel demand and steel exports also have a larger increase in steel exports , booming domestic demand, stone coated metal roofing tile factory in fact, presents the phenomenon, however, why steel prices after the Spring Festival, lasted several months of decline it, my analysis, the most important thing is a significant increase in the supply of steel, as well as two sessions lead to demand for steel fundamentals improved time node pushed back, and although the growth in demand, but are temporarily unable to achieve the desired result in the release of the scale. stone coated metal roofing tile installation
The rapid development of steel production capacity
Into the 21st century, as China's accelerated urbanization, along with rigid demand for steel continues to increase, the domestic steel industry entered a rapid development period, the country's steel production capacity from the last century, just over 120 million tons of scale, stone coated metal roofing tile increased rapidly to 2008 The more than 500 million tons, in particular countries in order to cope with the economic crisis in 2008, in 2009 introduced the "4 trillion" economic stimulus plan, a direct result including steel, cement and other industries, including many serious excess capacity, up to 2013 mid estimated national steel production close to 1 billion tons tons, and also showed an increasing trend. stone coated metal roofing tile manufacturer
Steel demand growth is slowing down
2010 onwards, with the slowdown in infrastructure investment, the overall domestic steel demand growth began to decline, exacerbated by overcapacity, according to Chinese steel stock survey, as of mid-2013, China's steel capacity utilization less than 80%, based on historical experience, capacity utilization is less than 80% once, it shows that the industry is shrinking period; while the average daily crude steel production was in 2013 at 2.1 million tons after the Spring Festival has always been more than high, excess supply and demand contradictions become The most prominent contradiction steel industry, directly affecting easy or difficult domestic steel prices rise, lower profitability of the industry. stone coated metal roofing tile supplier
Iron and steel industry is highly competitive loss widened
According to CISA latest statistics show that in January-May, and medium-sized iron and steel enterprises realized a total sales revenue of 1.4987 trillion yuan, an increase of 0.74%; profit 2.837 billion yuan, an increase of 33.99%; sales margin was 0.19%, the lowest level in the industrial sector; loss was 43.02%, up 8.14 percentage points. Profits and sales margins from comparison of the data it can be concluded, as oversupply, leading steel mills, the steel trade between the behavior of auction sales increased, leading directly into the steel prices comprehensive, long-term process of decline, by the end of June 2013 at the end of the main varieties of the domestic steel price is only 3400 yuan / ton, the price lows in four years, coupled with the high cost pressures, making the loss of domestic steel prices continue to expand, and that this trend is being further diffusion. stone coated metal roofing tile It is understood that from the beginning of 2012, the domestic steel trading business because of reduced profits or losses increased, a direct result of nearly 1/3 of the steel trading business bankruptcy or exit the steel industry, beginning in 2013, with the upgrade of supply and demand, some small steel mills also due to funding strand breaks and other reasons began to appear halted or even bankruptcy of the phenomenon, the entire steel industry into the more difficult of the "freezing" period.

by www.metal-roofing-sheet.com