Due to managing the finance unsteadily of developed countries & challenging the inflation of developing countries, the demand of global steel and output growth will slow down all over the world in the second half of 2011,especially is ERW steel pipe. The reason of reducing demand and slowing the expectant of output growth is the average steel capacity utilization of 81%.
Low cost iron ore and metallurgical coal has suppled our energy until 2013,which lead to more than 2010 years of raw material price level. Iron ore and metallurgical coal mining project attractive returns, as well as to the backward in the integration of steel enterprise benefit will continue to push merger and acquisition activity.
That global steel enterprises will appear the advantage of sustainable development in anticipation, including the integration of raw material, the ability of having to bring your own raw material production. The steel mills with high added value steel production capacity will have the ability to price premium, and the scale of production of the steel mills, in larger less demand, will meet the needs of the user in at the same time, in order to reduce costs, will temporarily cut production.