At present, China still regulate and control on real estate, real estate boom index has a turn in the first half of the year, it appears dropping high in new projects and housing sales area,so the situation is still severe in the second half of this year. And not only real estate industry has pressure obviously, but also the whole manufacturing confined obvious boom still declined. In the second half of 2011, manufacturing ERW steel pipe consumption expectation is not optimistic.
The fixed assets investment in theMidwestis higher than the national, basically see many regional steel demand. Fixed asset investment in the Midwest year-on-year rate of increase over to the eastChinaarea, xinjiang,gansu,sichuan,chongqing, and other parts of theMidwesthas still maintained a high growth since 2011.
Steel production is still in the high position, high production for steel power is still not enough. steel production is 290 million tons from January to May in2011 inChina, increase of 8.5%. The main products are in output growth momentum. In 2011, the annual capacity utilization will still as much as 85% or more in recent years, as the highest level.
Social inventory is still declining, and worry about the increasing inventory in the later period. Taken together, the consumption of steel has been inferior to expectations since 2011, and steel production is still in the high position. Import and export situation is as same as in 2010. Net exports is expected to around 35 million tons this year.
The customs data shows, iron ore import is 52.88 million tons in April of inChina, up 4.5% month-on-month decline, fell 11.1%. iron ore import price inChinais about $157.6 / tons from January to April , rosing 53.9% year-on-year .
In the first half of 2011, although the price of steel always maintain concussion increasing, the profitability of steel enterprises is weakening because of cost.