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The Contradiction of Steel Supply and Demand Will Be More Prominent In the Second Half of Year

Chinese steel industry association has issued a report that crude steel pipe production is growing faster and decline in exports and other factors effect. The contradiction between supply and demand in late market is expected becoming more outstanding, steel prices will still run the fluctuation situation.

The report says that the country crude steel production reaches 350.5 million tons in the first half of this year, an increase of 9.6% at the year-on-year growth .Average crude steel 1.9367 million tons in a day, which is equivalent to the annual output of crude steel 707 million tons of level. From a monthly situation, crude steel daily output each month is more than the highest level last year. In the second half of this year, crude steel production year-on-year growth would be a month by month to go high trend in our expectation.

The report argues that, international market demand is falling, steel channel angle prices fell back, thanks to the major economies growth weak , such as Europe,America,Japan and ASEAN etc. In the second half of this year, our country is expected to export steel may be reduced. In the general situation of big supply, because the guarantee room ,farmland water conservancy and other infrastructure projects make a big construction, long material supply and demand situation relative is slightly better, but the situation of oversupply strip steel rolled pipe will be more severe.

Therefore, Chinese steel industry association reminds that steel market supply and demand contradiction become sharp, market competitive is becoming more intense. Steel enterprises need to arrange production reasonably, according to the market demand change adjustment of product structure, strengthening the self-discipline, avoiding the blind price competition, maintaining the steel market price running smoothly.

Our ERW steel pipe mill has 20 most advanced welding production lined from home and abroad and equipped with unites of welding pipe production line and high precision vortex flow flaw detectors, advanced sets of inside scarfring tools for tube and CTA forming from USA, also equipped withunites of welding machines which are supplemented with slitting shear ,cold rolling machines and scalefree bell type anneal furnace and rools design services, moreover, we have strong technical resources with annual production capacity of 100.00 tons.

 

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