The overall price of China's steel market continues to decline, and many businesses are still pessimistic and even suspend trading. Under the influence of the big environment, the price of China's steel industry fell. The steel business community analyzed the decline of China's steel prices, that is, it was also affected by economic factors.
Political Factors
China's major regulatory policies have intensively issued "Several Opinions of the General Office of the State Council on Further Strengthening Energy Conservation and Emission Reduction to Accelerate Structural Adjustment of the Iron and Steel Industry" and "Regulations on Production and Management of the Iron and Steel Industry". Adjusting the industrial structure and accelerating the restructuring and integration of the steel industry, the introduction of this policy has accelerated the industrial structure of various steel mills and eliminated backward production capacity. However, due to the existence of local protectionism, some steel companies within the reorganization still take the road of backward production capacity, which will increase the inventory of surplus steel. The state also needs to strengthen the implementation of policies to meet the standards of the 11th Five-Year Plan.
economic factors
1. On June 20, 2010, the central bank of the central bank announced the reform of the mechanism for forming the exchange rate of the Renminbi: since July 21, 2005, China began to implement the floating exchange rate system. In the past few years, the reform of the RMB exchange rate formation mechanism has progressed in an orderly manner, and it has achieved the expected results and played a positive role. This favorable policy has led to the development of steel and even the entire commodity, but for the steel industry that has been in a low temperature for a long time, it is only a powerful force, and it cannot be reversed.
Second, the Ministry of Finance and the Ministry of Commerce subsequently issued a cancellation of export tax rebates for 406 items of goods, including 48 tax numbers for steel products. This has caused China's iron and steel enterprises to fall into the disadvantage of "internal and external troubles." The return of steel and the increased market burden will greatly increase the burden on steel companies.
The introduction of a series of policies will have a greater impact on the steel industry, although some policies have recently intensified the pressure on the steel market, increasing the inventory of steel, and the market price is also in a state of discomfort. But this will also speed up the pace of adjustment of China's steel industry and eliminate backward policy directions, which is the only way for China's steel industry to accelerate the reshuffle and industrial upgrading.
Market dynamics
National steel stocks reached 16 million tons. Market dealers said that in June many companies were losing money and shipping, and the loss of two or three hundred yuan per ton. Such a loss situation makes many dealers difficult. If the goods are sold at the current market price, the dealers will bear the losses caused by the price inversion. If they do not sell the goods, not only the long-term customers can not keep, but also cause many dealers. The funds are tight.
The market's procurement situation is also quite cold, with a 60% reduction in volume compared with the same period last year.
The domestic steel market is weak, and the downstream industry is becoming more and more wait-and-see. As the steel industry enters the off-season in the season, the price of steel in China is hard to pick up in July.
Political Factors
China's major regulatory policies have intensively issued "Several Opinions of the General Office of the State Council on Further Strengthening Energy Conservation and Emission Reduction to Accelerate Structural Adjustment of the Iron and Steel Industry" and "Regulations on Production and Management of the Iron and Steel Industry". Adjusting the industrial structure and accelerating the restructuring and integration of the steel industry, the introduction of this policy has accelerated the industrial structure of various steel mills and eliminated backward production capacity. However, due to the existence of local protectionism, some steel companies within the reorganization still take the road of backward production capacity, which will increase the inventory of surplus steel. The state also needs to strengthen the implementation of policies to meet the standards of the 11th Five-Year Plan.
economic factors
1. On June 20, 2010, the central bank of the central bank announced the reform of the mechanism for forming the exchange rate of the Renminbi: since July 21, 2005, China began to implement the floating exchange rate system. In the past few years, the reform of the RMB exchange rate formation mechanism has progressed in an orderly manner, and it has achieved the expected results and played a positive role. This favorable policy has led to the development of steel and even the entire commodity, but for the steel industry that has been in a low temperature for a long time, it is only a powerful force, and it cannot be reversed.
Second, the Ministry of Finance and the Ministry of Commerce subsequently issued a cancellation of export tax rebates for 406 items of goods, including 48 tax numbers for steel products. This has caused China's iron and steel enterprises to fall into the disadvantage of "internal and external troubles." The return of steel and the increased market burden will greatly increase the burden on steel companies.
The introduction of a series of policies will have a greater impact on the steel industry, although some policies have recently intensified the pressure on the steel market, increasing the inventory of steel, and the market price is also in a state of discomfort. But this will also speed up the pace of adjustment of China's steel industry and eliminate backward policy directions, which is the only way for China's steel industry to accelerate the reshuffle and industrial upgrading.
Market dynamics
National steel stocks reached 16 million tons. Market dealers said that in June many companies were losing money and shipping, and the loss of two or three hundred yuan per ton. Such a loss situation makes many dealers difficult. If the goods are sold at the current market price, the dealers will bear the losses caused by the price inversion. If they do not sell the goods, not only the long-term customers can not keep, but also cause many dealers. The funds are tight.
The market's procurement situation is also quite cold, with a 60% reduction in volume compared with the same period last year.
The domestic steel market is weak, and the downstream industry is becoming more and more wait-and-see. As the steel industry enters the off-season in the season, the price of steel in China is hard to pick up in July.
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