Prices of China's steel products will stabilize at a lower level in 2009 to the age of high cost, high price, and high profit for the steel industry is gone, said Song Tianxiang, Sales Manager with Jigang Group Co. at a recent forum on China Steel Market Outlook. Song predicated China's steel industry would enter an age of meager profit in 2009 after the fallback and adjustment in the second half this year. Steels price is expected to wind above the cost, he added.
According to Song, steel market has run in downturn for five consecutive months, and is estimated to touch the bottom and rebound upon shrinking stockpiles in distribution and terminal customers. The strong growth momentum of energy industry will boost demand for high-tensile steel and pipe-line steel, despite dwindling demand from steels' downstream industries.
Liu Haimin, a researcher of Metallurgical Economic Research & Development Center, notes that as steel output decreases and inventories are on the verge of exhaustion, steel prices will be restored in the coming two to three months to stave off losses for large and midsize steel plants.In a long run, steel industry will maintain low profits by optimizing product mix and strengthening industrial concentration, and it's unlikely for the industry to tumble in the red for a whole year. Liu predicated China's steel consumption would not enjoy annual average growth of double digit in the future, and the industry will focus on optimization of product mix instead of quantity growth.
According to Song, steel market has run in downturn for five consecutive months, and is estimated to touch the bottom and rebound upon shrinking stockpiles in distribution and terminal customers. The strong growth momentum of energy industry will boost demand for high-tensile steel and pipe-line steel, despite dwindling demand from steels' downstream industries.
Liu Haimin, a researcher of Metallurgical Economic Research & Development Center, notes that as steel output decreases and inventories are on the verge of exhaustion, steel prices will be restored in the coming two to three months to stave off losses for large and midsize steel plants.In a long run, steel industry will maintain low profits by optimizing product mix and strengthening industrial concentration, and it's unlikely for the industry to tumble in the red for a whole year. Liu predicated China's steel consumption would not enjoy annual average growth of double digit in the future, and the industry will focus on optimization of product mix instead of quantity growth.
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