Citigroup large total commodities analyst at Mr. Ivan Szpakowski made entitled "China's steel industry supply and economical schedule 40 hot dipped galvanized steel pipe tide challenge" keynote speech.
He pointed out that China's iron ore imports increased dramatically, and in the next few years, several big exporter of iron ore will increase production, although at present the rise in the price of iron ore, adds to the cost of steel production, but what they know about iron ore mine profit space is in decline. The main reason is that the global iron long radius butt weld pipe elbow ore export traders in increases in the cost of cash flow, the current domestic Banks and investors pay more attention to the spot price of return on capital and profit, the influence of project decision of company is more and more carefully the operation of the project, so in the current iron ore price contract has changed, even if the contract project has API oil welded steel pipe started, but the prudent decision will still affect the project in 3 to 8 years of development in the future.
He pointed out that at present in China's economic structure adjustment, the steel industry is affected is the most large, especially focusing on environmental issues, steel consumption in China, the demand of real estate industry is very high, the other also includes infrastructure, roads, railways, pipelines and equipment demand is very high, the total accounted for 80% of the steel consumption, is China's steel production capacity surplus, to control the environmental protection while improving energy efficiency, the pressure of the steel mills profit increase.
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