Last year, steel production capacity to complete the goal, but the first quarter of this year, crude steel production is still increasing.
April 26, China Iron and Steel Industry Association held a press conference revealed that from January to March this year, the average daily crude steel was 223.44 million tons, equivalent to an annual output of 816 million tons of crude steel, slightly higher than last year's crude steel production. Especially in March Nissan reached 232.25 million tons, a record high.
With the increase in production, since the second half of last year, steel prices rebounded. China Steel said the steel price composite index fell to 92.23 points on April 21, down 14.5% from its March high. Since late March, the prices of all the basic varieties have declined. The price index fell more than the decline in long products.
China Steel Association suggested that iron and steel enterprises must overcome short-sighted behavior, not blindly expand production; to be soberly aware of the steel industry, the basis for the effectiveness of recovery is not solid, can not be mistaken for the industry market situation has undergone a fundamental change and relax efforts.
China Steel Association: clear "land steel" will not bring a shortage of rebar
In the first quarter, the national economy started well for the steel industry to provide a better market demand, the steel industry in the same period last year to change the situation, and the first quarter of the steel industry efficiency continues to improve.
China Steel Association data show that 1 to 3 months, members of the iron and steel enterprises to achieve total sales revenue growth of 40.16%; profit and loss to achieve total profit of 23.248 billion yuan, a year earlier loss of 8.748 billion yuan.
In the context of steel production capacity, steel prices since June last year began to rise. However, driven by rising prices, steel production rebounded in steel prices in March this year, once again fall. Steel enterprises to good performance can continue to be sustained.
According to the China Steel Association data, March 3 CSPI steel price index reached a high point since 2013, 107.88 points, but as of April 21 has fallen to 92.23 points, higher than the March 3 high of 14.5%; 3 Since the end of last year, the price index for all varieties has declined, and the price index of the board has fallen more than the decline in long products.
There are industry researchers told reporters that the current demand for steel than in previous years, the normal preference, but did not appear in the outbreak of the imagination, and the release of production efforts but a lot, but also continue to rise, which let the market continue to pull The power of the weakened.
Prior to the regulatory requirements of a comprehensive ban on the "land of steel", the industry estimates that this involves tens of millions of tons of actual steel supply, if the above objectives can be achieved, the steel market will have an upward momentum.
China Steel Association said that the beginning of this round of steel prices this year is mainly to continue to go to the production capacity in particular to clear the "land steel" brought about by the expected, but the removal of "land steel" will not bring long products, especially rebar Of the shortage, and "land steel" capacity is high, but the actual output is not so much.
"At present, the total market demand is not changed, and production growth, exports decline, resulting in increased domestic market supply will inhibit steel prices." China Steel Association vice president told reporters.
China Steel Association also said that the ups and downs of steel prices depends on the relationship between supply and demand, steel prices can fluctuate in a reasonable range, the need for common maintenance, hope that large enterprises, regional enterprises in the price should be determined in the production, Order organization, no order is not produced.
Do not blindly expand production
Although the current steel industry compared with the previous situation improved, but compared with the horizontal level of industrial enterprises profit margins are still low.
China Steel Association member sales profit margin of 2.77%, but 1 to 2 months of the national industrial enterprises above the scale of the main business income profit margin of 5.92%, the steel industry profitability is still low. 1 to 3 months loss of business decreased by 17, there are still 19% of the enterprise losses.
Last year, steel production capacity to work more than expected targets, but by the impact of rising prices of steel prices, China Steel Association said steel stocks are still at a high level. March 20 cities five major varieties of steel social stock of 11.69 million tons, compared with February fell 36 million tons, but an increase of 2.23 million tons. In March the five major varieties of inventory in hot rolled coil and cold rolled coil are increased, rebar, wire, plate fell. At the end of March, members of the steel stocks of 14.4334 million tons, an increase of 410.08 million tons than the end of February, an increase of 1.678 million tons over the previous year.
Taking into account the current level of inventory and corporate profitability, to the production capacity will continue to be the next important task of the steel industry.
Told reporters that in the near future to convene the inter-ministerial joint meeting, arrangements for the deployment of this year to clean up the work of steel to carry out inspection, at present, the provinces have been clean up the "land steel" enterprises a total of more than 500, involving production capacity 1.19 million tons, is expected to 7-8 months, will be to the production capacity of "land steel" clearance work for the final acceptance.
In the same time, China Steel Association, said the current need to deal with the relationship between production and production control, when the capacity utilization is relatively low, it is important to do a good job control production, expand production does not mean that Profitability, the whole industry experienced a painful lesson in 2015, therefore, iron and steel enterprises must overcome short-sighted behavior, not blindly expand production; to be soberly aware of the steel industry efficiency recovery is not solid, can not be mistaken for the industry market situation has been A fundamental change has taken place and the effort has been relaxed.