Traders No "masukura" Or Short

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2009 beginning of the year, domestic steel prices in November last year the low bounce

. Baosteel has recently raised the prices of major products, from August 2008 to become the first price increase since.

However, recent data Monitoring also showed that the steel market, traders in Beijing, not as usual before the Spring Festival this year, an increase of steel reserve. JP Morgan Securities managing director and Chairman of the Chinese market, said Jing Ulrich, the steel industry plagued by overcapacity and slowing in manufacturing and real estate investment under the high-risk exposure, combined

Iron ore And coking coal suppliers polarization, so that the whole industry is facing unprecedented challenges, steel prices rose almost no further reason.

Trader: "This year's feast is not Masukura"

The demand side, one of the largest steel demand side of real estate development pace slowed down significantly. As individual buyers will not strong, and real estate enterprises are facing cash flow pressures, resulting in decreased investment. Jing that steel exports in 2009 of a clunker. First, because foreign demand is still weak, and second, the traditional Korean exporter of steel products, currency devaluation, make their products more price advantage. 1 November 2008, China's steel exports fell 1.8%, with peak in August exports of 6.3 million tons, while in November plummeted to 1.9 million tons.

Lange steel analyst Charles Lee believed that the current steel prices have come down over New Year's Day before. Steel plant was mainly due to large-scale complex products

Iron ore price Decreased greatly, and national policy support, while a quarter of the annual Spring Festival of the reasons is because demand for the off-season, so the steel prices difficult to continue to rise before the second quarter. According to Lange Steel monitoring data, the Beijing market traders of steel this year as in previous years did not increase the steel reserve before the Spring Festival. Li Zhao said that the performance of traders also show that they are not good for short-term prospects.

China's steel industry in the fourth quarter of 2008, 6 years for the first time industry-wide losses. As a leader in the steel industry, Baosteel has also appeared in single-season losses for the first time in history. China Iron and Steel Association statistics show that 71 large and medium sized domestic steel mills in November widened to 67.7% loss, the loss amounted to more than 14 billion yuan. Recently, a number of large and medium steel companies have announced 2009 operating objectives, and in 2008 is widely expected to yield flat or slightly up.

Private enterprises become involved in multi-industry consolidation

Experiencing rapid growth up to 6 years after the big fluctuations in the steel industry in 2008. Macro-economic slowdown and industry cycles in the dual pressures of running the domestic steel industry in a major structural adjustment. Jing said that the Government plans to reduce low-end and inefficient steel production capacity, larger steel companies are expected to become active in the industry consolidator.

Lange Steel Information Research Center, Room Rongrong said that China's steel industry concentration is low, the largest 10 steel production enterprises account for only about one third of total output. Housing Rongrong that the domestic steel industry a few years ago the major mergers and acquisitions mainly state-owned enterprises, private enterprises with the concept of change and the changing market situation, a new round of steel industry consolidation will become more diversified way. In addition to Baosteel, Wuhan Steel, Anshan Iron and the acquisition of the three central protagonists of foreign enterprises, private enterprises will also be in the internal integration and acquisitions take place.

Last month on the 19th, Tangshan City, Hebei, 39 integrated private steel enterprises were reorganized into two Iron and Steel Group, the total scale of production capacity to 28 million tons, becoming one of China's largest integrated private steel company. November private steel Rizhao Iron and Steel agreed to merge state-owned counterparts, Shandong Iron and Steel Group, the domestic steel industry began to emerge from the framework to explore the substantive consolidation of ownership.

Traders No "masukura" Or Short

By: dpdp

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