Market demand analysis of China’s steel industry under the new competitive environment

Steel industry as the most basic raw material industry, occupying the important status in the development of our country’s economy, since the 80 s, with the rapid development of steel industry in our country, China’s steel production in 1999 formally entering 100 million tons, until the end of 2015, China’s steel production 690 million tons, 800 million tons of crude steel. China has become a world steel power. But we still have to clear, China’s iron and steel both in the product structure and on the labor productivity with the developed countries still there is a large gap, and the steel market demand but also has important influence on the development of iron and steel enterprises.
The development status of China’s steel industry

(1) the growth rate of iron and steel production is slow. According to the statistics of the 2015 steel market industry survey report, China’s total steel production in 2015 was 11.2349 million tons, up 0.56 percent year on year. On the one hand, is affected by the policy, our country pay attention to the investment, the domestic steel overcapacity further it has formed a comprehensive no blast furnace, in the form of new steel production capacity has been further control. Iron and steel production, on the other hand, the problems of waste gas and waste water produced by the widespread attention of people, unqualified parts of our country began to implement environmental protection sewage facilities limit production policy, which prompted China’s steel production decline gradually.

(2) with the overall downturn of the steel industry in recent years, the continuous closure of small and medium-sized domestic steel enterprises and the gradual extension of the situation to large and medium-sized steel enterprises. But steelmakers’ profits have improved. Guanyin has benefited from falling prices of raw steel and ore. But can not be ignored, as in recent years “reservoir” function of reduced iron and steel enterprise, the impact on the price of steel iron and steel enterprises will become more sensitive, and iron and steel enterprises will face more risks.

(3), for the moment, in the first half of 2018 is drawing to a close, the hong kong-listed is in a weak performance on the whole, but there is no big decline again in the first two years, mainly steel supply as nearly two years to capacity and environmental monitoring, etc received significantly inhibited, and the demand for performance is not outstanding, but to be able to maintain a balance between supply and demand of basic level, although prices recently and have no obvious improvement, but then also won’t appear too pessimistic, stability will be the middle of the market.

For the current changes in the market, haode steel ring network to market demand for the purpose, grasp the market pulse, grab market share, promote the iron and steel industry companies, steel sales to stimulate the market demand, actively explore new development model of “Internet + steel”, the use of information communication technology and the Internet platform, the Internet, and steel, logistics, financial depth fusion, processing, warehousing and other industries, to create new steel development ecology. When serving customers, we will solve the problem of difficult processing and high logistics cost for customers free of charge, save money for customers, and solve the problem of shortage of purchasing funds for customers on the platform.

Post time: Jul-16-2018