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The future steel industry development situation of China and the U.S.

    2011 China (Hebei) International Metallurgical Industry Expo and Annual Meeting of China’s steel industry network on December 6 was held in Tangshan, Hebei. China Steel Industry Association, chief analyst Li Shijun said, in the “12th five years plan” China Steel will face a huge challenge. Enhancing  the competitiveness of Chinese industries, occupying the high ground of the future industrial planning, will play an active role in leading the drive of industrial development for a long time in the future.
    Li Shijun said that the tests of demand growth slowing down, steel industry upgrading, environmental resource constraints, homogeneity of the competition are major four Chinese facing steel test. These require us to maintain and extend the possible advantages of our industry on the basis of the low-end, pay attention to high-end nurture and enhance competitiveness, and have an accurate grasp of the world economic characterized structure by a period of adjustment, make efforts to foster China’s development of new advantages.
    Li Shijun think that in the “12th five years plan” period, China is still in the development of important strategic opportunities. Steel pipe industry will enter a crucial stage of transformation and development mode, which faces restructuring, transformation and upgrading of development opportunities, but also facing challenges of resource prices high, the need to slow growth, increasing pressure on the environment. Product homogeneity competition become severe, the industry will show a low growth, low profitability of the operation situation.
    In the United States, American International Iron and Steel Institute recently released a report said that in 2011, the U.S. steel industry supply and demand balanced, the market performed was relatively well, while 2012 remains cautiously optimistic of expectations.    
    AIIS said the recent flat steel product prices continued to rise, other products have remained stable, only the H-shaped steel beam market is lagging. Early 2012, the market is expected to remain optimistic, steady demand for end-users and service center, at the end of year inventories continued to decline, imports remain low.
    AIIS is expected, due to higher steel prices in the United States, imports of steel modest recovery next year. While exports may shrink, economic growth is expected to mainly external pessimistic. 2012 Euro area downgrade is expected to increased by only 0.5%, Chinese growth will decline. AIIS is expected, the U.S. economy will not double dip, in the second quarter U.S. GDP has growth of 1.3% in the third quarter increase 2%, economic growth accelerated.
    Network Statistics data show that the U.S. real estate industry is slowly recovering, October growth rate of housing start continue to rise, although the start quantity was slightly lower than the start of September, still is the second highest since 2010 May. The U.S. auto industry also has a brilliant grade, in October U.S. auto production rose 15.9% to 9.3 million, reaching the highest level since the financial crisis.
    AIIS Chairman said that in recent months, imports remained low and stable demand for the downstream industry which is expected early next year U.S. steel market remains strong. 

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