3 Month 16 Day organised by the Shanghai steel, special support to big business "2017 Iron ore global market-seminar " Shang, President, Shanghai steel Assistant Ren Zhuqian said, supply this year is strengthening, the market for intermediate frequency furnace expected inventory active recovery, consumer automobile production have fallen sharply, excavators production has increased infrastructure investment, exports will fall sharply.
She said funding environment is also different this year than last year, the financial sector deleveraging. Steel inventory and social stocks hit two-year highs, steel trading business pools will remain the norm. Hot pressure will be relatively large, cold pressure is not so great, thread production is on the rise, profit is the main cause of increased production, steel companies maintain profits at 70% above, and 2016 year only 20%.
Crude steel production up slightly in the first quarter, increasing 400 Million tons, while exports also reduced down. 2017 year taking into account the medium frequency furnace exit markets under the keep industry profits, growth is limited, is expected to remain at 7.9-8.03 million tons between inside and outside price difference and impact of anti-dumping, steel exports this year the average monthly at 800 million tons.
Ren Zhuqian said expected 2017 Year is the infrastructure of the new year, but for now, basically the same as last year, support will also be extended on demand in the first half of the real estate, manufacturing may lingered at the bottom. Industrial inventory to inventory has the passive to active filling inventory,2017 annual domestic steel consumption to be flat or slightly increased domestic steel consumption peak in 3-4 months.
Ren Zhuqian, said industry profits this year will be maintained in a good state, steel prices will render the bottom elevation, average price higher.