2017 iron and steel industry is still in transition stage, the steel price is difficult to rise

China steel industry association recently reported, in 2017, China’s steel demand is expected to remain stable, but the Shinestar of iron and steel institute considered think, due to the increasingly complex market environment at home and abroad, the steel industry is in a stage of transition to erase, not big changes in the overall market, steel prices to rise sharply.
As Angle steel, galvanized Angle steel, channel steel, galvanized channel steel, metal steel board, open the tablet, and other products production services, Shinestar group have been very concerned about China’s steel prices. In 2016, steel prices rose sharply, the iron and steel industry so reverse the depth of loss, profit. The first 11 months of the industry total profit of 33.15 billion yuan, and compared with the loss of 52.9 billion yuan.
Back in 2016, the Shinestar of iron and steel institute considered think, push factors of rising steel prices, the first is to continuous supply power limiting capacity policy; Second, real estate, automotive industry needs the strong recovery from improved more than expected; Three is a loose money provide ample liquidity to markets; Four is the coal 276 working days policy and the high grade iron ore resources nervous cause to rising raw material prices increase the cost driver. In 2017, the production capacity to the above factors, in addition to policy continues to strengthen, the other three factors will be significantly weaker. And iron and steel production capacity to strength will be bigger, at the same time, with the real estate enter the downward cycle, real estate development, automobile electrical appliances commodities, such as consumer goods growth is expected to also will fall. Based on this, in 2017 the domestic hong kong-listed is expected to double weak in supply and demand situation, the push of iron and steel production capacity to supply side and demand side real estate regulation and control of overweight, or will become the main affect domestic steel prices to logic.
Shinestar of iron and steel research institute said,in the face of the market in 2017, are full of confidence, also want to clearly recognize that although the steel industry has realized the profit, but it is only out of the trough, is not completely out of the woods, the industry is still in the small profit operation, still faces many difficulties and problems, not blindly.
According to the report, dissolve excess capacity, backward production capacity is the key to steel prices running smoothly. In 2017, the steel industry to work capacity to continue to move forward, Ground of steel, medium frequency furnac , such as backward production capacity will gradually withdraw from the market, but from the overall situation, the domestic market oversupply situation in the short term is difficult to reverse. In 2017, the domestic steel production is expected to maintain a high level, while the decline in steel exports, so steel prices continue to rise sharply.

In front of the 2017 has arrived, Shinestar group will keep optimistic attitude, we will continue to do yourself, constantly to develop more high quality of Angle steel, galvanized Angle steel, channel steel, galvanized channel steel, metal steel board, open the tablet, and Carbon steel pipe manufacturer, further to meet customer demand.

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About Hunan Prime Steel Pipe Co., Ltd

HUNAN PRIME STEEL PIPE is the export gateway of SHINESTAR HOLDINGS GROUP. We are dedicated in providing and exporting high performance-price ratio welded & seamless steel pipes and fittings covering various steel grades. At Prime Steel Pipe, we believe that honest communication, expertise in our industry, and prompt execution lead to strong long-term relationships. Our professioanl team provides " one-stop procurement" servics to coordinate with your project regulation, site and terrain, and ensure the best quality of products by assigning skillful experts at every stage of production. Our principles is to keep the honesty in mind, to win reputation by trust. We strives to providing quality products, competitive price and value-added services to our clients throughout the world.

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