Cisa remind: steel market to focus on three major problems in the future

24, reporters learned from the China iron and steel association website, in late December 2016, iron and steel institute CSPI China steel price index for 99.51, rose 10.10% month-on-month, narrowed 2.38% increase, rising for three months; Rose 76.53% compared with a year earlier. In 2016, the CSPI annual average of 75.37 points, increase of 13.36%.
Expectations for the future, cisa, as the Spring Festival approaches, the market demand is still relatively weak, steel prices rose sharply situation cannot last forever. At the same time, the market need to focus on three main problems: one is to resolve the excess capacity, backward is the key to the steel prices running smoothly; Second, the original fuel prices rose sharply, iron and steel enterprises authors synergistic harder; 3 it is to trade protection tend to look up, steel exports harder.
From the point of prices for all of last year, plank price rise is the largest, long products prices rise is relatively small, seamless steel pipe prices rise in the minimum. CSPI plank 2016 average price index to 78.12 points, up 17.63% over the previous year; CSPI long products average of 74.61 points, up 11.21% over the previous year.
For steel price rises in December last year, cisa believes that raw material price support is one of the reasons. In December 2016, influenced by factors such as the cold weather, the domestic steel market into demand off-season, steel production decreased. Because the raw materials such as iron ore prices high strength, support steel prices continue to rise.
In addition, the main steel industry maintain rapid growth, steel demand to maintain steady; Crude steel production rose slightly, the contradiction between supply and demand of the market slightly eased. Last December, industrial output rose 6.0% month-on-month growth 0.46%; Manufacturing PMI is 51.4%, the fifth consecutive month stay within the range of expansion. At the same time, domestic crude steel supply in December last year, 60.36 million tons, calculated on calendar days fell 1.03%. (China securities journal)