Not be too pessimistic about the prospects of the steel market – steel, steel ma

Near the end of the year, a number of economic data is still not satisfactory. Including China, the global economy is still down, consumer demand is difficult to rapidly improve short period of time, in particular, showed a more substantial decline in exports. Moreover, in the future there may be a new outbreak of steel "demand the earthquake," such as the world's automotive giants can survive, free from collapse? Is an uncertain factor. 2009, American and European countries into the extent of the recession just how deep? Long-term agreement Iron ore price How big drop? It exceeded expectations? Also outstanding. Only when the above-mentioned negative factors completely out to do, the steel prices to the basic bottom. Accordingly expected Q1 of 2009 may be the worst period of the steel market. Therefore, the prospects for the steel market, can not be blindly optimistic, and the enterprises should prepare for "tighter day."

Analysis of the steel market, we must adhere to the "two-point." On the one hand, can not be blindly optimistic. On the other hand, the prospects for the steel market, especially China's steel market outlook, can not be too pessimistic, it should be full of confidence.

Steel market confidence in the future, mainly based around the world collectively "generous" rescue the market, the internal demand in China great potential, has emerged bottoms market and production costs in support points bit upward. It is because with the solid foundation, so completely to avoid the global steel market "crash."

1, the world's collective generous "rescue"
Since the outbreak of financial crisis, countries in the world including China attaches great importance to have introduced to fight are mine, "rescue" measures, such as loan interest and gradually approaching to zero. Expected in the future there will continue to introduce new measures. Through these measures, after a period of fermentation will certainly show a great "back" effect, consumer demand may exceed the expected strong recovery. If the optimism of some, if not the next big "demand crisis", such as the collapse of the world's auto giants, Chinese steel demand may rise at the end of 2009, even pessimistic, the situation appears more serious, will be the year in 2010 recovery, and will not fall into for years or even 10 years of "the long winter."

Second most populous country with huge potential demand within
Sharply due to external demand, China's economic slowdown have emerged, even so, more than 7% in 2009, the growth rate is still relatively high level of steel consumption growth to fall only, and no absolute decline. Moreover, China and other populous country with huge potential domestic demand, relatively abundant capital, large room for maneuver control policies. 4 trillion yuan in particular countries to stimulate domestic demand, significantly increased investment in infrastructure and public facilities, the scale of investment has accelerated the progress. Affected, there will be a lot of construction steel increase. Preliminary estimates, although in 2009 the national decline in steel exports directly, but the overall apparent consumption at 5.5 million tons, an increase of more than 8% level. Thus, while the short term "Chinese demand factors" can not fully offset the reduced demand for the share of developed countries to lead the rapid recovery of the world steel market, it can avoid the global steel market "crash", can be an important "firewall."

3, steel prices began to shock bottoms
Be sure, since the second half of 2008 after two consecutive price drop in steel price bubble has basically been released. Although steel demand is difficult to rapidly improve, prices rose a short time conditions are not met, but the continued fall of space has become smaller and smaller. Some evidence suggests that the current domestic steel demand began to recover, the market price really has entered the stage of shock bottoms. One

signs housing sales have started in some areas, revealing warmer. A more relaxed monetary policy in support of the Central Government, if the real estate business, it has substantially lower home sales prices, and can step in place, we will be able to stimulate the rigid demand (from domestic demand and improve sexual needs) of a large number of the release of active transactions . Subsequent capital return will be developers and new construction area increased.

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