Rising Prices of Iron Ore, Coke, Coal and Other Raw Materials Are the Main Factors to Push up Chinese Steel Prices in 2008admin
Research and Markets has announced the addition of the “China’s Steel Industry Research Report 2007-2008″ report to their offering.
In 2007, China’s crude steel production was 487 million tons, up 15.63 percent year on year. The global crude steel production was 1.316 billion tons, up 8.2%. In terms of the rapid growth of Chinese steel production, at the end of 2007, the proportion of China’s steel output of the global output from 34.66 per cent in 2006 to 37.04 per cent in 2007.
In the first two months of 2008, output of crude steel was 70.45 million tons, up 6.4% year on year. The growth rate declined sharply year on year for two reasons: one was the limitation of production capacity expansion, another was lack of raw material.
In 2007, the export of steel was 62.65 million tons, an increase 45.55 per cent year-on-year, 16.87 million tons of steel imports, down 8.98 per cent year-on-year. The proportion of exports has declined from 15.47% in April 2007 to 9.6 per cent. The expectation of proportion of exports will be around 10% in 2008.
At the first two months of 2008, export volume of steel has declined sharply, steel exported 7.25 million tons, 17.24% cumulative reduction. Steel imported 2.68 million tons, 0.74 percent less than the corresponding period.
In 2007, steel industry had a significant achievement, the total income of large and medium-sized iron and steel enterprises was 1.99107 trillion yuan(RMB), an increase of 32.81 per cent year-on-year, total profit was 144.74 billion yuan(RMB), up 49.54% year-on-year, sales profit ratio was 7.3%.
The rising prices of iron ore, coke, coal and other raw materials are the main factors to push up steel prices in 2008. Demands: the increment of global iron and steel is mainly from China, and domestic demand will remain strong. In addition, in terms of the planning of the State Development and Reform Commission, until 2010, there will be shutdown nearly 100 million tons of steel of the backward production capacity, which would have a tremendous impact on the future supply.
Key Topics Covered:
1 Supply: an obvious slowdown in the growth rate 2 Consumption 2.1 Analysis of Import and export 2.2 Domestic demands will be slow down 3 Prices 4 Profitability Analysis 5 Potential elements affect Chinas steel market 5.1 Increasing cost 5.2 Demand remains strong 5.2.1 Export 5.2.2 Domestic demand 5.3 Exchange rate – the appreciation of RMB 5.4 Policy factors
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