Why seamless steel pipe prices so bitter trend down, run counter to the excess capacity, inventory surge, represented by real estate in the past of the downstream steel industry growth is slowing, and steady growth such as "iron and base construction investment scale of song, did not see the implementation of, resulting in a decline in steel demand.The national bureau of statistics data show that in January to August, the national investment in fixed assets (excluding farmers) rose 10.9% year-on-year, growth than fell 0.3% in January to July, down 5.6% than the same period last year;The national real estate development investment grew by 3.5% year on year, more than 1 month to 7 month fell 0.8%, compared with the same period last year dropped 9.7%.New construction area of the building fell 16.8% year on year, real estate development enterprise land acquisition area fell 32.1% year on year;In August, the national industrial output rose 6.1%, than in July rose 0.1%, growth than the same period last year dropped 0.8%;The apparent consumption of crude steel is 477.48 million tons, fell 27.66 million tons, fell by 5.5%, compared to drop to expand 2.2% in 2014, more than 3.5% decline in large
seamless tube production.From the overall situation, macroeconomic under downward pressure in August, seamless steel pipe market demand fell.Data show that by the end of 2014, China's crude steel production capacity has reached 1.16 billion tons, if China is willing to, we can produce 70% of the world's iron and steel.In fact, China's crude steel production in 2014 is the nine times, 4.8 times is the sum of the 28 countries!There are media reports that China's steel, even in the next few years does not produce only on inventory will do the trick.Had a joke about China seamless pipe production capacity: steel production in China in the world rankings, the result is: the first name is China (not including hebei), the second is the hebei tangshan (excluding), the third is the tangshan (excluding conceal), and then the United States, Japan and so on.And China's steel enterprises have a characteristic, it is often the state-owned enterprise, less sensitive to the profit and loss, but with the accomplishments of the local government, closely related to GDP.So, even a loss, also want to go to the project, the expansion can.Reporter in the previous article analyzed, from the perspective of broad money M2 growth rate, China for the past 30 years has been basically a looser monetary policy stimulus.When the economic downturn, in 2009, for example, can achieve a staggering 27.7% M2 growth rate.Stimulate the economy, the simplest way is to make the iron base ", to stimulate the property market, seamless tube that leads to the expansion of demand, bring effect to make money.So, with around for steel projects.A wave after wave, sometimes central control is very difficult.
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