Deterioration of supply and demand, steel prices difficult forward

China Steel company Association, 25 study on its website, the report is expected, post-market supply and demand become more prominent, and fluctuating steel prices will continue to run the state.
      The report notes that in the second half, China’s fixed asset investment will still be large, irrigation and water conservancy facilities and construction of affordable housing is one of the key, fixed assets investment will maintain a rapid growth; While external demand has been shrinking, but because of China’s export productsimproved competitiveness and the improvement of product structure, import and export growth will remain stable; point increase as a tax exemption, wage increases for retired cadres and promote the reform of public institutions such as caused by the increase in pay for performance will also promote consumption increase.Overall, half of China’s economic growth will remain steady and rapid development of the domestic market still strong demand for steel.
       However, the report further pointed out that crude steel bars production in the second half of last year was a continuous chain down, crude steel output this year is expected to show a monthly rise year on year growth trend.Meanwhile, in Europe, America, Japan and ASEAN and other major economies, sluggish growth, international market demand, steel prices down significantly.China’s steel exports are expected in the second half may also be reduced
       Oversupply in general, due to the protection of housing and other infrastructure construction of farmland water conservancy started a large amount of timber supply and demand situation is relatively long slightly better, while the plate and strip the oversupply situation is even grimmer.

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