May 29, 2008 Steel Industry Overview – Steel investment, the price of steel – st

State Department to deploy the current coal supply of oil and gas transportation and agricultural work: 28, Premier Wen Jiabao chaired a State Council executive meeting of the deployment of the current coal supply of oil and gas transportation and agricultural materials. The meeting pointed out, do coal oil and gas transport and supply of agricultural materials work, is to promote disaster relief and reconstruction to win annual harvest, and promote sound and fast development of economy and society an important guarantee. Current coal oil and gas transportation and fertilizer overall balance of supply and demand, but some parts of coal, diesel and electricity supply is still tight, stable prices of chemical fertilizers and other agricultural materials increased pressure to take further effective measures, scientific control, coordination with and solve outstanding contradictions. Sichuan, Chongqing, Shaanxi and Gansu hit to protect the reconstruction start temporary price intervention measures: Yesterday, from Sichuan, Chongqing, Gansu and Shaanxi earthquake competent pricing department of understanding, in order to protect the lives of people affected areas and reconstruction, the country has been launched on the tent, steel, cement, glass, wood, brick sand and other post-disaster reconstruction of the temporary price intervention materials, and by limiting the spread rate or margin, limit provisions, the implementation of price increases reporting system and filing system, and efforts to stabilize the price adjustment materials prices. Development and Reform Commission: three years to complete the reconstruction of basic primary tasks: National Development and Reform Commission deputy director of the Mu Hung said yesterday in Beijing, the losses caused by the earthquake is expected to double in the loss caused by snow this spring, the state generally considered to basically complete with three main tasks of reconstruction. Mu Hung is a news conference at the State Information Office, made these remarks. He said the National Disaster Reduction Committee, the China Seismological Bureau and the Sichuan disaster loss is separately on Statistics and order situation. Statistical work in some grass-roots level, particularly where access is still relatively difficult to promote slow. So, on the specific loss of authority of the department will at some point come up with a relatively accurate figure. NDRC discouraging large scale coal export requirements of small coal mines resume production: Tight domestic coal stocks, and Wenchuan earthquake affecting such factors as water and electricity, the National Development and Reform Commission recently issued a notice to require compliance with the conditions of small coal mines resume production as soon as possible. Yesterday, the National Development and Reform Commission officials also say that does not encourage large-scale export of coal. Therefore, insiders fear, domestic coal export quotas for the rest may be canceled. Experts suggest the contingency reserve of coal preparation system: In the recently held "the Fourth High-level Forum on China Energy Strategy", the Yang Xianfeng, said by transportation bottlenecks, the southeast coastal areas need to import more coal power plant, but the policy impact of export restrictions, China's coal exports will be constraints. Mid-2008 China could become net importer of coal. Last year in the first half, China has become a net importer of coal for the first time once. Yang Xianfeng stable supply of coal to China put forward policy recommendations, he believes that the establishment of coal if the contingency reserve system, reserves and state enterprises should be combined reserves, particularly in the large transit port, key enterprises to establish contingency reserves of coal, improve security of supply of coal Emergency capacity.

China Steel Association report released said: post-disaster reconstruction support steel demand growth: China Steel Industry Association, the Department of financial assets to a newly released report that, due to rain, snow, earthquake reconstruction of infrastructure and housing will need a lot of steel as a support, the intensity of steel demand will not decline. Statistics show that 4 at the end of the domestic steel price index to 146.48 points, integrated, ring rose 4.17 points, an increase of 2.93%; year rose 35.32 points, an increase of 31.77%. Among them, the China Steel Association to monitor the eight main varieties of steel prices showed a rising trend. Domestic steel prices is mainly due to: market demand for steel remains strong; steel production growth rate down, the domestic market in the interim supply of tight state resources; raw materials and fuel prices remain high; poor growing domestic steel market price on the domestic the formation of a strong market pull. Luo: speed up the steel futures market: "Shanghai Derivatives Market Forum" to be the industry referred to as "5 28 forum," because it is the forum for the domestic futures market as a feast, we can share ideas, exchange of views. Coincided with volatility in international commodity futures markets, the occasion, "5 28 Forum" will bring not only the lively and festive holiday, and more insight into the commodities futures market insights. China Iron and Steel Industry Association, a year ago, yet the proposed steel futures market should adopt the policy of actively and steadily advancing, while the Shanghai Futures Exchange yesterday, "organized by the Fifth Shanghai Derivatives Market Forum" Steel Association Vice Chairman Luo, has strong appeal to the basic conditions have to be speeding up of steel futures market, and Steel Association expressed its representatives interested in promoting the aspirations of steel futures market as soon as possible.

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