Control capacity should be to the attention of the mills

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historically, steel mills implementation because of falling prices initiative production valuation behavior. 2005, 2006, the industry has proposed cuts valuation, but go away. Occurred since the production is all to the volatility of the business and the constraints and policy & other; Passive & throughout; The cut. Baosteel price policy to maintain flat in November, to a certain extent, shows the order status is still maintain normal operation, in the selling pressure is not big, contract carry forward under the condition of normal, to take the initiative to cut valuation of power is not enough.

at present, steel mills by active production possibility of price support is limited. Passivity, by contrast, yields more should be cause for alarm. The current iron and steel industry are under pressure, but they can not reproduce the financial crisis when mass production & other; Save & throughout; In the case. Currently under high pressure steel mills are mainly those who wander near the cost line, product added value is not high, the weakness of the market competitiveness is not strong enterprises. And large steel mills while the product cost is high, but due to the magnetic flap thermometer products have technical content and capable of supporting high prices, so as to maintain a certain profit space. So whether & other; The cut valuation & throughout; Or & other; Throughout production & leading; In the short term is unlikely to be large.

the downstream demand is slowing steel mills need to control capacity. The current economic environment are facing multiple pressures at home and abroad, combined with domestic capital chain is more nervous, considerable influence to market demand. Because investment growth in China mainly depends on the railway, such as housing construction investment, and halt in high-speed rail construction at present, although the real estate investment has affordable housing to boost but subject to capital chain pressure also face down, so it is possible that fixed asset investment growth in the future will continue to slow, steel downstream demand will continue to the downside.

weak downstream demand, iron ore prices also make steel pressure upstream. It is important to note that due to the domestic and foreign market adjustment, the fall in commodity prices, iron ore prices environment has four quarters. Coupled with the steel mills facing the difficulty to higher ore price, gradually entered the downward space will be sent the prices of iron ore. This will also to a certain extent, alleviate cost pressures faced by steel mills. Obviously, in the face of hard times, the domestic iron and steel enterprises need to adjust the production as soon as possible the rhythm, optimization of product structure, control the scale of production. In the industry & other; Winter & throughout; , focusing on the magnetic flap thermometer product added value, improve their own competitiveness and profitability, play good corporate & other; Internal work & throughout; 。

although the output pressure is limited, but does not mean that the steel industry can indulge capacity continues to grow. On the contrary, control capacity should be to the attention of the mills. Relatively strong demand due to the magnetic flap thermometer, nissan 193 crude steel in the first half of the national norm. In June 670000 tons, of which nissan high level innovation. In the third quarter, as demand, average daily steel output, there is a certain degree of decline. Key iron and steel enterprises in late September crude steel output for 163. 970000 tons, the estimated daily output of 193. 030000 tons.

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