Where is the Chinese iron and steel market       

The domestic steel market is still showing a continuous loss situation. Many steel companies have been battered, and big steel companies are still struggling to support them. Many small steel companies have long abandoned the army, but some even went bankrupt. The iron and steel market has entered a desperate situation. When and where to live, many people are looking forward to it.

Since November, steel enterprises have still been showing a downward posture, increasing unabated. At present, the steel market in order to expand the market layout, the big hit price war, even the vicious competition, lower than the cost price selling, the iron and steel market is a mess. These unwise actions, instead of easing the status of steel enterprises, have intensified their decline in the worse direction, and can hardly bear to look at them.

China Steel Association issued a steel price index of 56.19 at the end of 11, a decline of 34.12% over the same period.

Where is the Chinese iron and steel market

The actual losses of iron and steel enterprises may be more serious than those reflected in the financial statements. Some steel mills have to adjust the reports accordingly, considering that banks will take measures such as shrinking loans to deficit companies.

During this forum, Wang Jianhua, chief analyst of my steel network, also pointed out that the supply of domestic steel market is smaller than the decline of demand, which is the main reason for the sharp decline in steel prices.

Data released by China Steel Association show that in the first 10 months of this year, domestic large and medium-sized iron and steel enterprises lost 38 billion 638 million yuan, of which 72 billion yuan was the main business loss, and 48 of 101 large and medium-sized iron and steel enterprises accounted for half of the total losses.

When the supply and demand is out of balance, the capacity release of domestic steel plants has not been substantially reduced. A recent survey of the last week of my steel network shows that the capacity utilization rate of 163 major steel mills in China is 82%. Compared with the statistics of the International Steel Association on the productivity of global steel enterprises, the domestic steel industry has a 14% higher productivity utilization ratio.

However, the sluggish market demand still lets domestic crude steel output have fallen for the first time for the first time, and will continue to decline next year. In 2013, after the domestic steel market appeared the peak demand, it gradually entered the arc top area and led to the reduction of the output of coarse steel.

Zhu Jimin believes that although resolve the overcapacity is the industry consensus, but a loss of iron and steel enterprises are faced with "want to back out of embarrassment, some companies had been due to a loss of production, but the local government in order to consider the local economic development and social stability, will still continue to maintain production requirements of enterprises.

Wang Jianhua said that in the downstream demand of steel, the automobile industry may be the only growth area next year, and the demand for steel in building, construction machinery and shipbuilding industry will drop.

He predicted that the gross domestic consumption of crude steel will not exceed 6.72 billion tons next year, down by 4.5%-5.5% compared with the same period last year, and the crude steel output may also decrease by 5%-5.9% compared with that of the previous year, which is at most 7.7 billion tons.

At the same time, this year's exceptionally hot steel exports may be cold next year. Zhu Jimin thinks that the total volume of steel exports is expected to reach a record 1.1 billion tons this year, but this has caused considerable pressure on the international market which also suffered from overcapacity, and also affected the future export environment to a certain extent. He expects the gross domestic steel exports to grow very hard next year, which is basically the same as this year.

Wang Jianhua pointed out that in the first 11 months of this year, 22 countries launched 61 anti-dumping investigations against 28 domestic steel products, and the increasingly tense trade friction will make steel exports decrease next year.