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Iron and steel market supply exceeding demand in iron ......
| Time：[2008-12-9] Read[207] | With the financial crisis spread further, the market demand for iron ore negative growth, the gap between supply and demand, causing prices have fallen sharply. At this point for iron ore negotiations, both at home and abroad, China's iron and steel enterprises are more favorable
Huang blown financial crisis of the iron ore era of huge profits, a significant price reduction has become an inevitable choice.
"Steel and iron ore prices should be similar to the price, fell to 1994 levels." Dec. 8, the China Steel Association Secretary-General to the media, single Shang-hua said that the China Steel Association is calling for a substantial decline in the price of iron ore. There were indications that a Chinese request of the price range could be as high as 82%.
"Ocean iron ore market and will bid farewell to the era of huge profits, but the monopoly of international factors, iron ore industry is still room for better profits. The beginning of the end of this year, the price of iron ore will enter a period of relative stability." Dec. 6, "2009 Chinese steel market outlook and 'My iron and steel' annual net", the China Metallurgical Mining Enterprise Association has also given above ZOU judge.
China asked price
"Long-term agreement price of iron ore next year will certainly be decreased, the number will eventually drop, not one answer. However, the decline in short, China can not accept." Jian Zou said. With the financial crisis spread further, the market demand for iron ore negative growth, the gap between supply and demand, causing prices have fallen sharply.
At this point in the past, the annual iron ore negotiations are already under way, but this year, due to the global financial crisis, dealing a blow to the entire steel industry, making an extension of negotiations. A few days ago, It is reported that Australia's iron ore producers have a formal request for talks with Baosteel. It appears that the new iron ore talks to start soon.
However, at this time to conduct negotiations on iron ore, both domestic and international environment for China's iron and steel enterprises are more favorable.
Australia and New Zealand Bank forecast on China's iron and steel enterprises is likely to require iron ore prices have more than 50% of the rate of decline.
A few days ago, more news that Chinese steel companies to try to iron ore prices from April of each year to implement change from the practice in January, taking advantage of lower prices of iron ore, iron and steel enterprises in China for a more favorable position to negotiate. The single Shang-hua said that the new annual iron ore negotiations, the Chinese side will adhere to the FOB, against the spot price index, and further standardize the Chinese iron ore import market.
The end of the profits of iron ore
"At present, the domestic supply of iron ore has been serious than the situation demands." Jian Zou said.
At present, domestic iron ore inventory increase, of which the port inventories increased by about 36,000,000 tons, iron ore port other than the increase in inventory of about 28,000,000 tons. The increase in inventory at the same time, domestic demand for iron ore did not increase significantly. Can be expected that the real estate, cars, home appliances market down, China will further squeeze the profit space for steel industry. For some time, the Chinese iron and steel enterprises will take the initiative to limit production prices and speed up mergers and acquisitions.
ZOU the current iron ore industry development situation analysis. He pointed out that since 2004, China's iron ore output has maintained a high growth, the highest growth rate in 2006 reached 37.99 percent. January to September 2008, domestic iron ore production remained relatively high growth rate, cumulative output of 586,000,000 tons, an increase of 19.4 percent. In addition to the high growth domestic product, domestic enterprises and foreign producers of iron ore carried out a series of overseas iron ore mining project, which is also a substantial increase in the supply of iron ore capacity.
However, the ever-increasing supply capacity at the same time, sales of iron ore but with the financial crisis facing the arrival of more and more difficult.
Iron and steel industry is facing severe challenges
"China's iron and steel industry since the third quarter of the rapid decline of production, prices have fallen substantially and a sharp increase in the loss-making enterprises, the industry is facing severe challenges." China Iron and Steel Association said Qi Xiangdong, deputy secretary general, the January to October this year, China's 71 large and medium-sized iron and steel enterprises Profit fell 0.93 percent, which, in August year-on-year profit fell 19.44 percent, 72.9 percent decline in September, October is 5,835,000,000 yuan of direct losses. Iron and steel industry seems to have fallen to the bottom.
"When the bottom who do not know." Baosteel Group chairman Xu Lejiang the China Europe International Business School's "2008 Global Management Forum" talked about the prospects of China's iron and steel industry, with concern expressed. Xu Lejiang further explained that this year, domestic steel consumption of 400,000,000 tons, but China's possession of 600,000,000 tons of annual steel production capacity, the contradiction between supply and demand is very prominent.
In addition to the Baoshan Iron and Steel, Nanjing Iron and Steel Company chairman Yang Siming changes in supply and demand in the face of falling steel prices, are also not easy. He said: "The steel price fluctuations and are not the same as in the past, in the past, end-user demand has not shrunk, this is the end-user change, some businesses have closed, some reductions in pay." In the face of difficulties, Nanjing Iron and Steel Had to cut and the highest output by 40%.
However, Qi Xiangdong, also expressed the optimistic side: "The state has taken a number of measures to stimulate the economy, we must have confidence in the iron and steel industry. In the fourth quarter of this year and next year in the first quarter of the steel industry more difficult, but in the second quarter is expected to be signs of improvement . " |
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