China Plate Material Market Review
China Plate Material Market in July 2008 prices callback obviously the downstream industry needs reduced, in August the market or will continue to maintain the current operating situation, it is difficult upward breakthrough.
Through the first half of the domestic plate market, prices rose one after the July price callback obvious. In the first half to carry out large state-owned manufacturer of variety of structural adjustment, with high value-added varieties of the main board production, effectively avoiding the low-priced competition from private enterprises. In the case of the export tax increase, exports maintained a stable situation in the first half alone, showed a decline in June. The stability of exports to reduce the pressure on resources has played an important role. Demand to maintain steady growth in the first quarter into the second quarter after rising prices the way a great inhibition on consumption, some of the downstream industry product output declined in July dropped plate market prices, and even the price inversion. July 31 domestic 20 mm carbon plate in the average price of 6,496 yuan (t price, the same below) chain down 54.
Capacity change, plate production in China in June to 21.06 percent growth, maintaining low for the situation. Fluctuations in the growth rate down, the results are basically maintained a stable situation, it is estimated the latter part of output growth could fall to 20%. Output growth is declining, steel mills, adjustment of product structure continues. The 2008 adjustment of product structure is the direction of the main shipbuilding plate, the proportion of its production in the first half of 2008 up to 38.92%, while only 25.10 percent over the same period in 2007. 30 key enterprises in the first half of total domestic shipbuilding plate output reached 8.044 million tons, while the same period in 2007 number of 4.179 million tons in 2008, production was almost double the same period in 2007.
Import and export, the first half of 2008, total export volume plate 4.0715 million tons, an increase of -2.05%, export volume in 2007 compared to the same period have dropped. In addition to railway timber and cold-rolled coil, the other species are negative export growth. One narrow steel exports fell the most obvious, reaching -80.7%. Plate in the first half of the total exports accounted for 15.17% of steel varieties, in all varieties of steel which ranked fourth. Export taxes on the effect of gradually emerged, leading to negative growth in export situation, in particular, beginning in June, exports decreased significantly compared with the number of rings. From the domestic customs of the alloy in the plate’s exports increased supervision in the international market for the current high prices of domestic medium plate is difficult to accept the role of these two factors led to the decline in export volumes. Alloy type of board also enjoy a 5% tax rebate, compared with carbon plate exports to Canada increase by 5% customs tariff, a difference of 10 percentage points. Some enterprises in the production by adding a small amount of boron Ershi non-alloy steel into steel to enjoy tax rebates. As the authorities step up exports of the alloy class board of supervision, as well as domestic medium plate high-priced high, medium plate export volumes is expected in the future will decline, thus increasing pressure on domestic resources. Under its influence, plate market outlook is not optimistic.
The international front, the U.S. market remained stable flat sheet, Nucor Steel Corp. announced the increase plate 100 U.S. dollars / short ton, from August 1 started. The Nucor, the Evraz Claymon U.S. companies announced plans to carbon and low alloy high strength plate price increases are 100 U.S. dollars / short ton, from August 3 started. The U.S. market that the global plate supply, the U.S. plate prices have been high, a substantial steel price increase this to some extent by the anti-dumping policy of protection. The European flat products prices remain firm, Europe’s leading region Special Plate stocks remain at a high level, general special plate stock in Germany has reached a new high in recent years, this special plate to put downward pressure on prices. Special plate continued to rise in Europe, the delivery price has reached 920-960 euros / ton. As the stock higher, southern steel mill order is not ideal, is still working to arrange orders for 7-8 months. If the special plate prices decline in the late orders will be more bad condition. Asian flat timber market remains stable, due to energy, iron ore and other raw material costs, Nippon Steel will be shipbuilding and machinery plate price increases of 10,000 yen (95 U.S. dollars / ton), from August 1 started.
Since from the second quarter, the decline in industry volume growth. Housing construction area in the second quarter Biyijidu dropped 52.67 percent, the output of civil steel ships in May and June appeared in two consecutive months of decline, auto production for 3 consecutive months in decline. By the state’s macroeconomic control, monetary tightening, RMB appreciation and other factors, energy company restrictions on electricity prices, export blockage, etc, are also important factors affecting demand. The poor performance of the downstream production, steel prices rose increase in the downstream industry, cost pressures, businesses thus reducing the amount of purchases, the market boom levels affected.
As the rising costs of raw materials, iron ore, coke prices have skyrocketed, as steel prices offer up relying on first half of 2008, steel prices along the way line, a big margin. The decline in output growth plate, steel mills, adjustment of product structure, S & P board to resource constraints and other factors lead directly to product prices, to July, demand fell by directly contributing to lower prices, market prices began to fall.
In August, raw materials prices, energy shortages, the state’s policy for new projects, as well as the combined effect of the Olympic Games will continue to impact plate production, although the number of the beginning of the projected new capacity are more, but it will not be put into operation the second half of the estimated Many, output growth is expected to decline further, with the production of goods continue to promote the kinds of structural adjustment, the manufacturer will continue to produce shipbuilding plate, Pu board resources are not too many. The export side, the customs of the alloy due to more stringent export controls and international market prices for products that it can not accept the latter part of the export situation is not optimistic. Taking into account the demand side factors, difficult to take a good market in August, will continue to maintain the current trend.
I am China Quality Dress writer, reports some information about muscle elegance , hollow steel ball.
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