Vice president of the China Iron and Steel Industry Association Wang Liqun said today that the iron and steel industry is improving, the foundation is not stable, regional differences.
Wang Liqun made the remarks at the second China Steel financial derivatives International Conference in 2017, elaborating on the current operation characteristics of steel industry and steel related derivatives.
He said that since the beginning of this year, China's steel production increased, exports declined, consumption increased slightly. Among them, 1-4 months, the national crude steel production 273 million 870 thousand tons, an increase of 4.63%, the average daily crude steel 2 million 282 thousand and 200 tons, an increase of 118 thousand and 300 tons. Among them, crude steel output of 2 million 425 thousand and 900 tons in April, a record high. Over the same period, the national pig iron production 238 million 210 thousand tons, an increase of 4.20%, the monthly iron production levels this year were higher than the same period last year.
He said that China's steel consumption increased significantly, the actual consumption increased slightly, but it should be noted that the apparent consumption and actual consumption differences, the main difference may be concentrated in the steel mill.
Wang Liqun said that since the beginning of this year, China's steel market has shown stable prices, recovery of benefits and balanced development of industrial chain. Among them, the benefits of member enterprises rebounded, industrial chain balanced development and maintenance. However, the basis for the steel industry to improve is not stable, the difference increases, the market uncertainty increases.
He pointed out that the problem of excess production capacity has not been fully resolved, profit increase stimulation capacity rapid release, the relationship between supply and demand is still there is a big variable, corporate leverage ratio is high, production and management are still facing difficulties, and the regional difference is relatively large. In addition, environmental protection requirements on the steel market is increasing, and the industry deleveraging task is still heavy.
In the introduction of the relevant steel derivatives, he said that China's current black derivatives market turnover is generally active, the market this year's steel futures price trend of view is consistent. "This represents the development of steel derivatives market into a new stage, the information is symmetrical, investors are rational."."
He concluded that, at present, the entity's attention to futures increased, many enterprises have set up futures departments, and try to operate. The futures market has become an important direction of the spot market. It is suggested that enterprises should continue to learn and participate actively. Exchanges should form good interaction with industry and enterprises and work together to maintain the smooth operation of the industry. The futures market should further increase the delivery volume and strengthen the continuity of the main contract