There are signs that China's steel export orders is recovering, and the trend of volume and price go up.
Although constrained by high costs, due to the current steel export earnings have not obtained significant growth, industry analysts believe that the export expansion of steel is expected to become profitable to space.
There is the possibility of improved industry profits
However, while the export volume and price go, but a number of steel mills have said in an interview, the main raw material prices led to increased costs.
Anshan Iron and Steel Group, the marketing department, told reporters, Anshan Iron and Steel exports in January has indeed been improved, but because of a series of rising ore prices, as of now, no significant improvement in profitability in fact.
Yesterday the market there are rumors of Finance, Development and Reform Commission, Ministry of Commerce and other departments to study further strengthen the "two high" products export restrictions, reduce and cancel part of the brewing again, the export tax rebate. May involve products include steel, nonferrous **ls, rubber, construction material and so on. In this regard, the industry, told reporters that since last July has been canceled most of the varieties of steel export tax rebate, even if the rumors are true to cancel again, no significant impact on the industry. In addition, according to industry sources, although some of last year to cancel tax rebates, but most steel mills are adding boron by the way, does not affect product performance in the premise of making the product able to enjoy the tax treatment of ferroalloy names.
Qilu Securities analyst Du Hui steel that steel prices into profits during difficult and requires a shortage of refining capacity. "The current capacity utilization point of view, not enough to produce a qualitative transformation, but taking into account the future growth of domestic demand and external demand, seasonal open late to improve the steel industry there is the possibility of profit. Baosteel, Anshan, Maanshan Iron and Steel, etc. due to overseas benefit from a larger sheet cut class companies expected to benefit. "
Export situation is improving
Recently, a number of steel mills to the reporter said that the current export situation is improving, orders began to increase in January, and the growth trend is expected to continue for some time. Among them, Australia has become an important cause of floods.
"Because of the floods in Queensland, Australia coking Sinotrans Limited, is currently South Korea's steel smelting raw materials is threatened, the production is limited." Nation's largest private steel enterprise Jiangsu Sha Steel executives recently told this newspaper that Australia's share of global coking coking coal 64% of the coal trade, as Japanese and Korean steel mills, coking coal and more dependent on imports from Australia, the continued flooding caused by its production has a greater impact. As the raw material inventory sufficient to support full production, the current Japanese and Korean steel mills have been unable to meet international market demand for the original, Chinese steel mills to temporarily close this market gap.
In export volume growth, the steel export prices was also a significant rise. According to United Steelworkers network statistics, in January this year, the main exports of hot rolled steel price increased sharply. Among them, boron thermal export FOB price for the volume mainstream 670-680 U.S. dollars / ton, the overall rise early last month 60-70 U.S. dollars / ton, compared with late December were up 40-50 U.S. dollars / ton. Part of the plate and extrusions, steel wire rod export price has shown a rising trend.
"There is in the collective international steel prices rising channel, some varieties have been higher than domestic prices, which stimulated a certain extent, exports of steel." The sand steel executives said.
