It has to be said that in the first half of 2017, the steel industry has indeed done a good job in terms of production capacity. In the coming years, steelmakers are reigniting the momentum of increased production, fuelled by demand growth and "optimistic guesses" of outdated production capacity. A stepping-stone straight,welded pipe, ssaw steel pipe, piling pipe, sawh steel pipe and other products production services vendors, Shinestar Holdings Group always pay close attention to the development of steel industry.
Up to now, steel has finished 31.7 million tons of capacity, 63.4% of the pace. Of course, the market rally is not all about production capacity, but the most important thing is the need. We have found that the important support for this year's steel demand comes from infrastructure investment. In the january-april period, the construction of national highway construction totaled 462.3 billion yuan in fixed assets, a year-on-year increase of 33.1%, and railway completion of 154.4 billion yuan, up 3.5% year-on-year. The shipping industry, which had performed poorly in the past few years, has also begun to make a breakthrough this year, with the completion of the construction of 18.56 million metric tons in the first four months of the year, up 71.9 percent year on year. Machinery industry, excavators, bulldozers are the most two single that grabs an eye, April excavator to achieve sales of 14397 units, up 101.19% from a year earlier, bulldozers sales of 685 units, up 88.19% from a year earlier.
The steady state of steel demand is also making the once-chilly steel market smell of spring. In fact, the relatively high level of overall infrastructure and real estate development investment this year is causing many steelmakers to ramp up production. In the first four months of this year, the total output of crude steel was 273.87 million tons, up 4.6 percent year on year. In April, crude steel production rose 4.9 per cent to 727.80 million tonnes. By this measure, the average daily output of crude steel in April was 2426, 000 tonnes, up 4.5 per cent from the previous month and a record high.
Because of the steady increase in consumer demand, steel production continues to be profitable and competition for market share is fiercer. In the first quarter of 2017, the company handed out bright results, the best quarterly profit in nine years. However, cisa has long stressed that steel companies must overcome short-termism and not blindly expand production. It is important to be aware that the fundamentals of the recovery in the steel industry are not strong enough to be mistaken for a fundamental change in the industry market and a relaxation of efforts. But in the context of a rebound in profits and a turnaround in earnings, that clearly does not stop steelmakers from producing too much.
