China's Steel Exports Will Continue To Decline In The Second Half

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In June China's steel exports are 4.29 million tons, a decrease of 470,000 tons and 11.0%. CISA expected that due to the sluggish growth of Europe, America, Japan, ASEAN and other major economies, the international market demand decreased and the steel prices come down significantly. In the second half of this year, China's steel exports may also reduce.

According to the Statistics of the National Bureau, in June, the domestic crude steel production was 59.932 million tons. The average daily production was 1.9977 million tons, a growth of 2.80%, a new record high. China Steel Association said that in the case of slower demand growth, rapid growth in production and exports decline, the contradiction between the domestic market supply and demand increased.

Following a slight rise in prices in May, China's steel prices in June fell slightly. In the end of June, China Iron and Steel Industry Association reports that the composite steel price index is 134.40 points, a decrease of 1.53 points, down 1.13%. Compared with the same period of last year, the composite steel price index rose 18.99 points, an increase of 16.45%.

At the same time, the international steel market price continues to fall. In the end of June, CRU international steel price index fell to 208.3 points, down 3.9 point. China Steel Association believes that affected by the rapid growth of crude steel production and other factors, the contradiction of the market supply and demand is expected to become more prominent. The fluctuating steel price will continue to remain.

Analysts of the China Steel Association said post-market need to focus on two main issues. The first is the sharp contradiction between steel market supply and demand. The market competition is more intense. The second is that pressure of resources and energy price is still high. The third is the state has strengthened to obsolete backward production capacity to bring opportunities to the steel market.

Affected by the debt crisis in the United States and the influence of the strong earthquake in Japan, the demand of major countries slowed. It will certainly affect China's exports. In the second half the exports of steel would not turn better.

Analysts say that in the next two years after the further improvement of the supply and demand of the industry, the steel industry is expected to appear continuous decline. The contradiction of the market supply and demand is expected to become more prominent.


About the Author:
I am Amanda Xia from chinametalsnet.com, and my work is to promote a free online trade platform. http://www.chinametalsnet.com/ contain a great deal of information about low carbon iron, china steel bar, callaway x 20 iron,and more.



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