Steel prices in 2016 showed a rebound on the whole as a whole, especially in the second half of March and April and the second half of the big rally, the contribution to the production capacity can be said to be ranked first." Information Analyst Bi Hongbing first financial said.
Following the coal production capacity meeting, 27, the development and Reform Commission, Ministry of industry and other ministries held a meeting in Beijing, steel production capacity. To ensure the completion of 50 million tons of production capacity to the task, pay close attention to the market price of steel, to prevent market change radically, completely ban "ground of steel" has become the three key iron and steel production capacity to the deepening of 2017.
So far, the specific deployment of iron and steel production capacity to 2017 has been completed, "steel" and "zombies", such as new capacity this year, iron and steel production capacity to an important starting point.
Iron and steel prices rose
As the iron and steel production capacity to the deepening of the year in 2017 to resolve the excess capacity of about 50 million tons, the effective disposal of zombie companies, eliminate backward production capacity, the first half of a total ban on land of steel etc..
The meeting pointed out that the fundamentals of the steel industry is still a serious excess capacity has not changed, the price recovery, the basis for recovery is not solid, the ability to solve the problem of excess steel production is still arduous.
First financial was informed that in 2016 the annual withdrawal of steel production capacity of more than 65 million tons, coal production capacity of more than 2.9 tons, iron and steel, coal production capacity exceeded the annual target task. At the same time, affected by the production capacity, steel, coal prices have increased significantly compared to the beginning of 2016, the main varieties of prices rose more than 50% to the beginning of the year.
Hebei, Tangshan, three grade rebar, for example, its March 27th price is $3650 per ton, compared to the level of $1800 per ton in early 2016, as well as the level of about $2200 per ton in March 27, 2016, or higher.
The price increase, the "hard winter" for a long time have improved the performance of iron and steel enterprises. China Iron and Steel Association statistics, last year, large and medium-sized steel enterprises in one fell swoop reversed the situation in 2015 a substantial loss, and in the year to achieve a total of 30 billion yuan of pre tax profit. Among them, Bao Wu Iron and steel in 2016 pre tax profit of 7 billion yuan, a substantial improvement in pre tax losses than in 2015.
Yida steel information network research center director Xue Heping said, the national steel industry will be from a loss of 64 billion 500 million yuan in 2015, to a profit of 36 billion yuan ~400 million yuan last year, an increase of the absolute value of more than 100 billion yuan; profit about 86 households, accounting for 87% of the total number of households.
First financial from a number of research institutions was informed that this year, the main varieties of steel prices will be lower than in 2016, higher than in 2015.
With the previous rise in coal prices, as of the end of last year to the beginning of this year, the rapid rise of steel prices also caused concern regulators.
Data show that the largest steel steel rebar, rebar as of February 15th, SHFE closed at 3391 yuan / ton, while the highest point reached in December 2016 did not reach, but compared to February 3rd, is the first day after the Spring Festival closing price (3113 yuan / ton) rose 8.93%. With the opening in 2017 of the first working day of January 3 the daily closing price of 2851 yuan / ton compared to the rate of increase is as high as 18.94%.
However, at the meeting, the NDRC made it clear that the steel prices are not allowed to fall sharply rose.