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Various countries steel market price is unknown China steel with large trade deficit

Data show that currently only U.S. steel
mills raise prices slightly, other countries such as Japan, China steel product
prices mostly fell or keep fair, however, there are many differences over the
price.

Automotive industry what use more steel
products in the U.S., India, Southeast Asia, China and other places is also
good. Currently performance of Europe depot is poor, mainly because most of European
depot to set up factories in emerging countries, but there is no feedback to
home country after profit.

Public construction sector in various
countries, the development of infrastructure in Indonesia is relatively good, Indonesian
steel industry is not strong, causing Asian steel makers to actively seize the
market. Professionals believe that China’s public building strength is not
enough, and the urbanization policy should be more explicit, in addition to its
urbanization rate should be increased from the current 52% to 70%, the rest
supporting building measures have to be more explicit so can estimate the
impact on the steel market.

China is the world’s major steel-producing
countries, but because of steel production structure is irrational, but also it
is the world’s major steel importer. China steel imports are far more than exports
in recent years. In 2000, for example, China’s steel product exports achieved
3.047 billion U.S. dollars, while imports amounted to $ 9.56 billion, the trade
deficit amounted to $ 6.513 billion.

Our main trading partners in Iron and steel
products, Japan, South Korea and the EU is China’s high-value-added steel major
importing countries, CIS countries are our major importer of ordinary steel,
Southeast Asian countries, the EU and the U.S. are major exporters of steel
products.

 

Serious global steel overcapacity

Currently, the global steel overcapacity is
long-term structural problems, not the market a cyclical problem, steel
industry leaders need strong initiatives to reduce excess capacity, otherwise
the steel industry can¡¯t be reborn.

Morgan Stanley’s research data shows that
global excess steel production capacity is estimated 334 million tons, of which
China about 200 million tons of excess. The next five years, the world’s steel
production is likely to increase by about 3%, which means that no action is
taken, overcapacity situation will continue to exist. The traditional method of
solving overcapacity is business combination, but there are not enough healthy steel
companies willing to mergers and acquisitions unhealthy business. Overcapacity
in China is a difficult problem.

 

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