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Report: Iron and steel industry next year will truly enter the development of reduction

Source:Wuxi Haimai Metal Product Co.,Ltd.     Time:2016-12-19 Hits:

Xinhua news agency, Beijing (reporter Jiang Lin) in December 12, although this year to complete the task over capacity is a foregone conclusion, but from the current situation, the annual consumption of steel, crude steel production and the production of iron is increased or unchanged last year. 12 Metallurgical Industry Planning Institute released the report that in 2017 China's iron and steel industry will truly enter the "reduction development", crude steel production will be reduced by 2.2% to 7.88 tons.

Data show that in 2016 1 to October, China's crude steel production was 6.73 tons, an increase of 0.7%; pig iron production in 2015 was essentially flat.

"This year, the actual consumption of steel will increase slightly, which is mainly due to the growth of the automotive industry over the expected." Metallurgical Planning Institute president Li Xinchuang said at the press conference next year, the demand for steel construction, machinery, home appliances and energy industries will decline; steel demand and railway car industry would be increased, but not enough to stimulate overall growth. Expected total steel demand in 2017 will be slightly decreased by 1.5% to 6.6 tons.

Report predicts that in 2017, China's crude steel production of about 7.88 tons, down 2.2%; pig iron production of 6.69 tons, down 3.2%; iron ore demand of about 10.57 tons, down 3.2%. "The iron and steel industry to enter the 'reduction' is an inevitable, which means that the future will be 10 years and even longer difficult period. Since this year, although the steel price callback, but the whole industry profit rate is only about 1.2%, there are 27% iron and steel enterprises at a loss, from the development of industry has a long way to go. More can not because the price to pick up, shake the determination to go to production capacity." Li Xinchuang said.

The report also believes that in 2017 the global steel consumption will grow by 0.6% to 15.34 tons or so, Asia is still the world's largest consumer of steel. The next 5 to 15 years, the global steel demand will continue to maintain a slight growth

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