China Steel Market Report
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China Steel Market Report: Review of 2006 and Perspective of 2007. As the curtain of 2006 dropped, all happened this year, including the "unexpected" and "unclear" events, will be put in the memory of history.
Unexpected factors in China steel market in H1 2006
At the beginning of 2006, China steel market was covered by the atmosphere of productivity surplus, China steel price ran at low level, still mills saw high stock and most of them suffered profit loss, after great ups and downs in 2005, China steel market was still unstable in early 2006.
Many overseas countries cut production and digested inventory, meanwhile driven by rapid global economy growth and the reestablishment stock, international steel price halted dropped and started to rise.
While China steel market walked out the valley driven by the huge growth in export at the beginning of "11th five year plan period".
During "The 2nd Conference on China Steel Industry Development Strategy &Steel Market Trend for 2007" held by Steelhome website, Mr. Wu Xichun used two "unexpected factors" to analyze the rallied China steel market price.
The 1st one is the unexpected growth in China fixed asset investment and bank credit loan, and booming market demand in H1 as well.
The 2nd one is the astonishing rate that China changed its role from a net import to a net exporter.
Unclear market trend in H2 2006
When US steel price dropped after touching the peak, many industry insiders doubted the continuous growth in China steel export, while the fact is: China steel export reached 6.47 mln ton in Q1,06, 10.62 mln tons in Q2, 11.51 mln tons in Q3, and 13 mln tons in Q4. High export eased domestic market pressure.
Central government raised reserve rate thrice and lending rate twice this year, at the exclamation of tight capital supply from markets, newly-increased money loan seams to outstrip 3 trillion Yuan by end Nov.
Despite of export jump in China steel and semi-products, crude steel and steel products supply did not reduce, however, facing up with the price decline in H2, steel mills are stubborn to keep their price quotation firm.
In Jul.05, Steelhome lodged to analyze steel supply and demand situation in China from global perspective, and cleared that China crude steel output increment is the major force in satisfying the demand in international market, which are proved by the truth. It is the continuous growth in steel products and semi-products export that alleviated domestic supply pressure as well as prevented steel price dropping further.
China government will keep rapid and stable growth in national economy, but change economy structure and growth mode. China government will try every effort to eradicate backward productivity and restrain the release of backward productivity. It should be the key task to promote international payments balance, and pay attention to steel products export policy, in addition, China steel production capacity increment will also affect China market trend in 2007. What will China steel market be in 2007?
Annual Report of Steelhome
Following is the Annual Report of Steelhome, which analyzes China steel market for 2006 and perspective for 2007.
International Steel Market Report for 2006
China Steel Market for 2006
China Construction Steel Market for 2006
China Medium Plate Market for 2006
China HR/CR Plate Market for 2006
China Plated/Coated Sheet/Coil Market for 2006
China Strip Market for 2006
China Seamless Steel Market for 2006
China Section Steel Market for 2006
China Stainless Steel Market for 2006
China Iron Ore Market for 2006
China Scrap Market for 2006
China Coke Market for 2006
China Ferroalloy Market for 2006
How to order
The report costs USD 750 and is available in PDF format by email. For details, please get in touch with reports@steelguru.com
Disclaimer: This report was made by Steelhome of China.SteelGuru doesn't guarantee or endorse the correctness or completeness of the contents. SteelGuru does not take any liability or complaints arising out of the same in any way, whatsoever.
