Recently,Because of the continously downing of the products price.
More and More mill start Annual production line checking and from another size reduce the production quantity.This kind of solutions from some kind encouraged the market pessimistic emotions,but How long these solutions can last?is this the bottom of the steel price? is this the changing points coming ?
Steel Price keep dowing, Production of Steel firstly come down since recent 20years
2015,Steel price sharply coming down, much more serious than 2014,the CSPI come d, down sharply from 106 to 76.5,reach to 27.8% down rate.Compared with last year, that down 34.89 ,get 31.3% down rate.
The down trend makes the steel company all are loosing.With our research in 163 china mills, only 4.91% inside get profits, rest all are lossing.
From Offical news, from Jan to Sep £¬China Crude steel prodcution 610million tons,down 2.1%, this is first happening since recently 20 years.
Mills stopped Production or reduced the production quantity ,try to stable the price or rise the price,
but the confict between the request and supplying still exists.
Since 2011,demostic steel price seek into the downing trend,this conflict becomes the main effection actors.
Currently our crude steel reach to such big quantity,but the actual using just 66%,access qty more than 30%.
with such big pressure, the small adjustment in the market looks can’t solve anything.the conflict between request and supplying still serious.The price rebound, need the whole filed more reduction qty in production or stop production or closed some small mills to reach this goal.
Totaly because of China steel special position and running system,this adjustment for the Production capacity is very difficult,still a long way to go.
Although Government gives some new policy and also enlarge the investments,the excess production capacity still serious to the steel industry.
Mills surely will do some adjustment in order to keep mills running, but limited to this steel industry running systerm , this still need a long time to achieve.In short period, China won’t appear a big scope production reduction.With such kind of atmosphere,steel price still didn’t have enough power to rebound.