Development and reform commission (NDRC) voice: steel price boom is unsustainable

The recent domestic hong kong-listed last have obvious pull up prices. The plank product outperformed long profile products. As a result, tablet, steady rise in the price of hot rolled plate products, and doing well.
But the national development and reform commission, industry coordination department inspector Sharon 9 in the whole united metallurgical chamber of commerce to promote the transformation of the seminar capacity made it clear that steel prices rose sharply, contrarian 1 to 9 month will not change China's iron and steel production capacity to rhythm, next year will continue to promote the iron and steel production capacity.
All united metallurgical chamber of commerce wen-rong shen also points out that under the background of no obvious increase of effective demand, the recent steel price surge is not normal. At present, and the price situation is difficult to continue the price is likely to have arrived in the next two years high. Varieties of steel this year, he said, the futures price fluctuation is bigger, the intensity is not seen in nearly five years.
It is understood that the recent steel prices rebounded sharply. , according to data on the same day, November 9, strip, hot rolled, medium thickness plate year high, concrete, steel 2900 yuan/ton, the year 1740 yuan/ton jumped by 66.67%; Hot roll of 3300 yuan/ton, the year 1880 yuan/ton jumped by 75.53%; Plate 3180 yuan/ton, in the year of 1790 yuan/ton rose as high as 77.65%. The rest of the steel types also years time highs respectively. Opened plate, hot-rolled medium plate prices so to firm up.
Benefit from rising steel prices, operating performance of enterprises improved. As of October 31, 35 listed steel companies, according to the three quarterly reports 29 mills produce profit, accounted for eighty percent, Shinestar of iron and steel group. In the same period last year, 35 steel mills in the losses of enterprises more than sixty percent.
Shinestar of iron and steel research institute believes that the cost of steel and steel mills will is a city of the spot market can stick to the main factors. Well at the same time, the steel mills orders now, in the short term, the pressure is not big, also become the market prices stand, lift the main reason.
Experts said that at present is a short-term phenomenon, in the next decade will be surplus capacity. According to Shinestar of iron and steel research institute, for the forecast of consumption in the next decade fall in steel consumption will be faster than the capacity reduction. Figures show that China's steel consumption gentle decline after the peak of 702 million tonnes in 2014, by 2020, China's consumption capacity of 595 million tons, to 2025, the consumption will be reduced to 552 million tons, is only 492 million tons in 2030.
At the same time, the stock rose also confirm the steel prices are unsustainable. Data shows, although compared with the same period last year declined obviously, but from the point of sequential, major cities in China steel stocks have since mid to late July 7.4 million tons for three consecutive months. By the middle of October, major cities in China social stock has risen to 8.5 million tons of steel.
"The national development and reform commission in carry out the plan to organize the formulation of capacity at present." Sharon said, reduce capacity of not less than 2016, 2017, will be the steel mills capacity to overcome the difficult phase. In this context, will increase the intensity of steel mills integration, promote merger and reorganization. Shinestar of iron and steel group will respond to this.