Since this year, the iron ore market is relatively stable, coke prices fluctuate greatly, and the recent rapid decline in steel prices, iron ore and coke prices are relatively strong, superimposed environmental investment and operating costs rose sharply, the steel industry production costs and operating costs show an upward trend, the industry profits continue to narrow, but still maintain a reasonable level of profitability, belong to the normal fluctuation of the market.
Wang Dayong analysis believes that this month, steel prices accelerated the fall of the main reasons for three aspects, one is the market demand for the release of restricted.Long material aspect is mainly affected by the low season and shutdown of infrastructure construction, the plate is mainly affected by the weak demand of downstream steel manufacturing industry (machinery, automobiles, shipbuilding and other major steel industries continue to decline in production and sales) and export obstruction and other factors; The second is the continued rise in market supply.Affected by high steel prices, large profit margins and late staggered peak production restrictions expectations, the national crude steel production has remained at a higher level of more than 80 million tons in the past six months, the national crude steel production of 82.55 million tons in October, compared with the same period last year increased by 9.1%, the output hit an all-time high.Third, a subtle change in the market mentality.
"Steel as the basic raw material of manufacturing industry, is China's dominant industry, in the national economy will not waver in the status, but iron and steel enterprises must not blindly produce, to recognize the difficulty of maintaining the current level of profitability increased, steady change factors increased."Iron and steel enterprises should also recognize that China's economic development in a stable and good situation has not undergone fundamental changes, the current difficulties are high-quality development forward in the journey of problems and challenges, to deepen reform, innovative creation and fine management to solve the problem,In the green, safety, management, quality, sustainability and other aspects of training good internal skills, increase the strength of mergers and restructuring, unswervingly take the road of high-quality development. ”(Source: Great Wall Network)