The hottest way to destock is long. Iron and steel

The road to destocking is long. Steel enterprises have entered the critical point of limiting production.

the road to destocking is long. Steel enterprises have entered the critical point of limiting production.

China Construction machinery information

Guide: at present, the internal inventory of steel mills has reached the critical point, and price reduction and promotion has become the main task for steel mills to clear the backlog inventory in the next stage. However, without the improvement of demand, it is difficult to stimulate the recovery of consumption by reducing prices. At that time, the scene of limiting production in 2008 will happen again in steel enterprises. Today

at present, the internal inventory of steel mills has reached the critical point, and price reduction and promotion has become the main task of clearing the overstock inventory of steel mills in the next stage. However, without the improvement of demand, it is difficult to stimulate the recovery of consumption by reducing prices. At that time, the scene of limiting production in 2008 will happen again in steel enterprises

since this year, the global benchmark iron ore price has fallen. The main function of this part of components is to complete the transformation from non electrical quantity to electrical quantity, which has slipped by about 4%. The current iron ore price has fallen to the lowest point since last October

last Friday, the transaction price of iron ore was $135/ton. The decline in iron ore prices is mainly due to the sluggish demand for steel in China, but the market decline is still limited, just because most Chinese steel mills are still close to full capacity. With the recent approval of Baosteel and other three major steel projects by the national development and Reform Commission, differences in the late trend of iron ore prices have increased significantly

according to the data, on May 25, the national development and Reform Commission approved the total investment of Baosteel Guangdong Zhanjiang iron and steel base project of 69.68 billion yuan, with an annual construction scale of 9.2 million tons of iron, 10 million tons of steel and 9.38 million tons of steel. On the same day, WISCO Guangxi Fangchenggang steel base project was also approved by the national development and Reform Commission with a total investment of 63.99 billion yuan by the plastic processing industry, which increased by 2.1% in the first quarter. The total investment of these two projects exceeds 130billion yuan. Subsequently, the national development and Reform Commission also approved the Shougang steel relocation project

can the huge domestic investment projects drive the price of iron ore and coking coal up? According to the average expectation of five analysts compiled by Bloomberg, iron ore prices are expected to rise to $152 per ton in the second half of this year. Foreign analysts also predicted that the price of coking coal, another key steel-making raw material, is expected to rise by 7%. In the domestic steel market, affected by this "stimulus policy", steel prices across the country have rebounded slightly. However, due to the lack of substantial improvement in demand, it has fallen back to the level before the price rise

at the same time, the survey also found that the real economy is not as optimistic as analysts thought, and there is no sign of improvement in China's steel demand. Under the pressure of production capacity, the downward pressure on steel prices is still huge, and steel production enterprises will enter the critical point of limiting production

statistics show that as of June 1, 2012, the social inventory of five steel varieties in 26 major markets in China was 15.615 million tons. Previously, a relevant person from the metallurgical industry economic development research center revealed that the domestic consumption and export demand was only about 700 million tons. Compared with the total demand of 900 million tons last year, there was an excess of 200 million tons of steel production capacity. Obviously, the internal inventory of the steel plant has reached the critical point; How to clear the overstock inventory will be the main task of the steel plant in the later stage

at the same time, Australia, as a major importer of China's iron ore and coking coal, is also facing heavy pressure from China's steel enterprises to slow down production. Neville power, CEO of FMG, Australia's third largest iron ore supplier, believes that as China's economic growth slows, the global iron ore price will fall by 19%, further to $110, and find a stable price point for sustainable development on this level

this situation also occurs in the field of coking coal. According to the global coal, the benchmark price of Asian coal trade, the price of electric coal in Newcastle port, Australia, has fallen by 20% this year to 9 per ton. The large-scale implementation of this technology may be able to repair the soil polluted by heavy metals. The price fluctuation of domestic finished paper is limited to the price of imported finished paper, which brings the hope of a nearly two-year low of US $2. For some miners, such a price is close to the operating cost. The import of iron ore and coking coal slowed down, resulting in a sharp decline in the freight rate of bulk dry goods. At present, the Baltic Sea Trade and maritime exchange dry bulk freight index (BDI) fell for the 10th consecutive trading day on Wednesday to 878 points