Frbiz reports that in China and internationally, the steel market supply is exceeding demand. Import and export prices have fallen and currently the steel industry is facing a downward trend situation. It is expected that in the second half year the steel industry supply with further increase with little change in steel demand. Further exacerbating the gap between supply and demand China domestic as well as foreign demand may decrease and China steel production may continue its declining output trend.
In the first half of this year, the global crude steel production up by 27.9%YoY reaching 706 million tonnes. China produced 323 million tons of crude steel up by 21.09%YoY. However, the yield increase has not driven prices high. Domestic steel prices month by month increases from the start of the year until the end of April when they reached their highest point
The international market is also the same. Since the first half year, India, Japan, Korea and the European Union have imported 18 species of key monitoring steel products creating price decreases. The domestic and foreign market continues to be a supply exceeding demand situation and is the main reason causing the quantity to increase and the price to fall.
Starting in 2010, the steel industry trade friction situation has generally slowed down. During the first half year, China steel product trade cases saw a YoY reduction. Meanwhile as global supply exceeds demand, other countries may take up trade remedies and improve tariffs and barriers to combat pricing issues.
Although China steel enterprises steel production and exports have largely increased, steel enterprises have yet to realize profit increases. Now China steel industry development appears slow with steel output, imports and overall level of earnings low. The steel industry facing industrial safety problems should also be a major concern.