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Steel City is still oversupply

         China Steel Industry Association, August 16, said in a report in July, smooth operation of the national economy, investment, consumption and exports continued to grow rapidly, demand for steel bars was still strong.Steel production fell slightly, increased net exports, the social stock continued to decline, steel prices rose slightly.Still expected to post strong market demand for steel channel angles, raw materials and fuel prices high, strong, but because steel market is still oversupply situation, fluctuating steel prices will continue to run the state, different species will be more apparent.

           Reported that post-market need to focus on the main issues are: First, the situation is good demand for long products in the plate.As the security room, a large-scale water conservancy construction, railway construction investment is also large, demand for tinplate used in construction will be more vigorous.And because shipbuilding, automobile, engineering machinery, the growth rate slowed down, plate and strip product homogeneity will become more competitive.

          Second, the appreciation of the renminbi is not conducive to steel exports.Against the dollar has fallen below 6.4 mark, to August 12 fell to 6.3972 RMB exchange rate.RMB appreciation, lower export earnings of steel, not conducive to the iron and steel enterprises to expand exports.Third, raw materials and fuel prices increased steel production costs.As the U.S. dollar depreciated in the international market dollar-denominated crude oil, iron ore, coke and other commodity prices rose, lowering the iron and steel enterprises will increase the difficulty of the work efficiency.

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