Entering October, China's steel product sales market is far less popular than expected. The steel market has recently been cold and the steel market will remain in a downturn in the short term. At present, the emergence of a high-capacity and low-market market in China is mainly due to excess capacity in the industry. Therefore, efforts to adjust the industrial structure need to be further strengthened.
According to the reporter's understanding, in the traditional sense of the "golden nine silver ten" steel sales season, this year it is extremely deserted. Many steel traders also expressed that they have experienced the “golden nine is not gold†steel market, people are increasingly looking forward to this "silver ten". Judging from the current situation, the turnover of steel products just entering October is still scarce, and whether the "silver ten" can continue to depend on the steel demand of taking over time can be conclusive.
Recently, China’s steel industry has been affected by the international financial bond crisis and has also been affected in export trade. As a result, China's steel production capacity has increased the overcapacity to some extent. The reporter learned that as early as 2005, China's crude steel production was 352 million tons, and in 2010 it actually reached 620 million tons. The Ministry of Industry and Information Technology found that based on the first half of the production capacity forecast, taking into account the rapid release of steel production capacity, in 2011 the total crude steel production is expected to reach 690 million to 700 million tons, an increase of 60 million to 70 million tons over the previous year. For this reason, the steel industry has excess pressure, "the steel industry will run for a long time under high production and low profitability."
Of course, in August this year, the Ministry of Industry and Information Technology further released the task of eliminating the backward production capacity of the steel industry and required that all phase-out tasks be completed by the end of the year. However, according to the reporter’s understanding, enterprises that are tasked with eliminating backward production capacity are building new production capacity under the premise of maintaining backward production capacity, and will only eliminate the former after new production capacity is completed.
Previously, officials of the China Iron and Steel Association told the reporter that China's steel industry is facing the problem of equal replacement of production capacity, and the new production capacity is even greater than the backward production capacity, so the steel industry will reproduce excess capacity in the future. Therefore, in the period of the 12th Five-Year Plan period, China's steel industry must, on the one hand, intensify the elimination of backward production capacity, and it must also control the arrival of new production capacity. Moreover, in the realization of a comprehensive industry green transformation plan, we must further strengthen the adjustment of the industry structure, and strive to achieve the industry goals of postponing, controlling production capacity, adjusting structure, and promoting transformation.
According to the reporter's understanding, in the traditional sense of the "golden nine silver ten" steel sales season, this year it is extremely deserted. Many steel traders also expressed that they have experienced the “golden nine is not gold†steel market, people are increasingly looking forward to this "silver ten". Judging from the current situation, the turnover of steel products just entering October is still scarce, and whether the "silver ten" can continue to depend on the steel demand of taking over time can be conclusive.
Recently, China’s steel industry has been affected by the international financial bond crisis and has also been affected in export trade. As a result, China's steel production capacity has increased the overcapacity to some extent. The reporter learned that as early as 2005, China's crude steel production was 352 million tons, and in 2010 it actually reached 620 million tons. The Ministry of Industry and Information Technology found that based on the first half of the production capacity forecast, taking into account the rapid release of steel production capacity, in 2011 the total crude steel production is expected to reach 690 million to 700 million tons, an increase of 60 million to 70 million tons over the previous year. For this reason, the steel industry has excess pressure, "the steel industry will run for a long time under high production and low profitability."
Of course, in August this year, the Ministry of Industry and Information Technology further released the task of eliminating the backward production capacity of the steel industry and required that all phase-out tasks be completed by the end of the year. However, according to the reporter’s understanding, enterprises that are tasked with eliminating backward production capacity are building new production capacity under the premise of maintaining backward production capacity, and will only eliminate the former after new production capacity is completed.
Previously, officials of the China Iron and Steel Association told the reporter that China's steel industry is facing the problem of equal replacement of production capacity, and the new production capacity is even greater than the backward production capacity, so the steel industry will reproduce excess capacity in the future. Therefore, in the period of the 12th Five-Year Plan period, China's steel industry must, on the one hand, intensify the elimination of backward production capacity, and it must also control the arrival of new production capacity. Moreover, in the realization of a comprehensive industry green transformation plan, we must further strengthen the adjustment of the industry structure, and strive to achieve the industry goals of postponing, controlling production capacity, adjusting structure, and promoting transformation.
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